On Friday,Reuters reported "Mexico's improving economic prospects, coupled with low inflation, are winning the country a second look from international investors and fund managers." International investors and fund managers are seeing the potential of Mexico's services sector and have been steadily gaining confidence in its ability to draw more companies into the market. This, coupled with Mexico's new financial tools, is poised to infuse the country's infrastructure and private equity with billions of new dollars.
A recent survey by Merrill Lynch and Bank of America showed that Mexico is highly preferred by emerging market investors over other Latin American countries, such as Brazil. Mexico’s booming economy, which is expected to grow around 4 percent this year, together with the country's consistently low inflation rate, has placed its economic potential at a considerable advantage in the eyes of finance executives and investors worldwide. At a LatinFinance summit last week, Lupin Rahman, senior vice president of emerging markets portfolio management at Pimco, stated "In our view, the Mexican economy is very much in a sweet spot. In terms of output, in terms of growth, all these dynamics point to a very positive 2011 for the Mexican economy."
Financial expert Alfredo Thome, head of global markets at Banorte bank, said that Mexico will experience an even greater boost in its economic condition if it will begin to open its service sectors, improving efficiency and making the Mexican economy even more competitive. "It can seriously not only grow at 6,7 percent but actually perform much better than the BRICs."
Luis Harvey, Nexxus Capital’s co-founder, agrees that Mexico's service sector is underrated. "You have a huge internal market which has a per-capita income twice as big as Brazil's." With new investment money being put to work, the middle class and other industries will be given a boost, thanks to the increase in spending on consumer finance, health and leisure services.
Mexico’s reputation on the global investment scene has improved immensely in recent years due to the introduction of new financial tools. In addition, new investment options, like hybrid security for retirement funds and mexico real estate investment funds are being rolled out. All of these new options in Mexico's financial market are signs of positive development for the country’s growing economy.