According to Fox News,a “second gold rush” is currently underway in Latin America. In recent years,the sale of soybeans,iron,copper and other commodities has helped transform the economies of countries like Mexico despite what the global financial crisis that has affected the rest of the world.
This shift is perhaps most apparent when you consider the new class of wealthy Asian investors who are flooding many of Latin America’s industries – including manufacturing and construction – with hundreds of billions in cash. Viewed as a “top business opportunity,” countries like Mexico are already benefiting from the new relationship.
At last week’s World Economic Forum in Mexico,business and government officials said they expect Asia to surpass the U.S. and Europe as the world’s top trading partner with Latin America over the next ten years. According to Fox News,South Korean,Japanese and Chinese investors are leading this trend,increasing their collective investments in Latin America over the last year by tens of billions of dollars.
“I don’t have any doubt that Asia will soon become the region’s top trading partner,” stated Mexican Economy Secretary Bruno Ferrari Garcia de Alba. “In Mexico,we believe we need to get closer and closer to Asia.”
According to the U.N.,the percentage of Latin America’s exports heading to Asian-Pacific countries in 2010 was more than three times the amount from the year 2000. Ferrari added that Asian-Pacific countries buy 31 percent of Mexico’s total exports,a number that has grown by around 20 percent annually over the last five years and amounts to $110 billion.
Latin America – including Mexico real estate – is viewed as an attractive investment opportunity by Asian investors for its wealth of natural resources,strategic location near the U.S. and Canada,and low labor costs. In fact,raw materials in Latin America are receiving between 40 and 50 percent of the total Asian investment in the region,with the rest being put into construction,manufacturing and a number of other businesses.