Mexico’s economic growth is quickly making it one of the most attractive of the world’s emerging markets,with an impressive manufacturing boom,continued expansion of export power and a wealth of foreign investment dollars pouring into the country.
In fact,according to a recent article in Money Week magazine,the current economic boom in Mexico real estate is backed by strong systemic structures,such as NAFTA,which are laying the groundwork for even more growth to come. Also,the peso has grown significantly stronger and Mexico’s substantial workforce helps to keep inflation down,which in turn makes the price of goods produced in Mexico even more attractive in other parts of the world.
“The gap between Chinese and Mexican wages has narrowed sharply from 260 percent in 2006 to just 10 percent today,” states Sergio Martin of British multinational banking and financial services company HSBC. “Taking into account travel costs,Mexican factories now beat Chinese ones on cost for many goods. That explains why 12.5 percent of America’s imports currently come from Mexico. That’s the highest in a decade,and second only to Canada.”
Although Mexico is still furthering its relationship within the U.S. market,it is also busy opening up new business sectors on a global scale,including neighboring markets in South America,as well as in Great Britain,other parts of Europe and Asia. To put this in perspective,Mexico’s current value of exports is at $700 billion annually,which is expected to double in the next eight years or less.
Furthermore,public debt in Mexico stands at just 35 percent of the GDP,a number that is dropping instead of rising,and inflation is expected to remain steady at less than 4 percent. What does all this mean for investors? It means that investing in Mexico now has excellent potential for long-term profits,especially considering incoming President Enrique Peña Nieto’s promises to enact a variety of progressive reforms that will further strengthen the nation’s economy.