Thanks to its stability and growth,Mexico is poised to become one of the world’s 10 largest economies by 2030,according to a recent statement by Renato Grandmont,executive director and chief investment officer of the Department of Wealth Management Latin America for Citigroup.
Mexico is expected to take this position regardless of whether or not planned structural reforms are actually carried out,thanks in large part to the country’s solid foundation. This has made it attractive for investments – both domestic and foreign – throughout the recent economic crisis and will keep Mexico growing at a steady pace throughout 2012 and 2013. It is also excellent news for the value of Mexico real estate,which is expected to increase dramatically in a number of locations over the coming months.
According to Citigroup,Mexico’s Gross Domestic Product (GDP),is expected to grow at 3.5 percent this year,which would be well above the 2.6 percent that is projected for the global economy and the even lower 1 percent that is expected in most industrialized countries. Grandmont also pointed out that other European countries could fall into similar trouble as what has been seen recently in Greece,Portugal and Ireland,which could prolong the current European recession.
In this climate of economic uncertainty for global leaders,emerging nations could see substantial economic growth,with a combined GDP of at least 5.2 percent. Part of the reason for this growth is the lack of substantial debt,compared to countries like Japan,which has around $12.6 trillion in debt,the U.S.,which is carrying around $11.6 trillion in debt,and Italy,which is in third place with around $2.6 trillion in debt.
As the U.S. continues to struggle with increased taxes and a slowdown in consumption,Mexico’s economy has managed to emerge strong despite the close ties with its northern neighbor. And by all accounts,this trend will continue in the coming months and years,as Mexico becomes a major player in the global marketplace.