To all who are watching (and there are many who are watching),Mexico is ripe with economic potential,according to CNBC’s recent series of articles,titled Investing in Mexico. Over the last decade,Mexico’s growth has been sustained largely by industrial exports,more than 80 percent of which have been bound for the U.S.,including automotive components and other electronic parts,as well as crude oil. Of course,tourism has also provided a consistent boost for Mexico’s economy throughout much of the 20th century.
“Mexico has successfully controlled inflation,maintained adequate levels of debt and has amassed all time record currency reserves of around $160 billion,” writes CNBC. “This provides the country with an arsenal of weapons to combat an eventual crisis,such as the ability to lower interest rates and the liquidity to inject into the economy if needed.”
Mexico’s conservative economic policies have also helped the nation to avoid the many issues that have plagued the financial sectors of the world’s developed countries since 2008. This includes supporting a solid banking industry with no serious exposure to risk. Also,Mexico’s banking system remains underserved when it comes to credit and other financial services,leaving plenty of room for growth.
“Mexico is not only in good shape to deal with a global downturn,but its growth prospects look bright,” stated Nomura Securities analyst Benito Berber. “In the next decade Mexico is likely to become Latam’s largest economy and one of the most dynamic emerging markets.”
Mexico also has impressive growth potential in terms of exports and internal consumption,with an industrial sector that is becoming more competitive at the same time that the U.S. economy has recovered and China’s labor and logistics have increased. Another often overlooked positive concerning Mexico real estate and its potential for investors is the fact that its demographics includes a population of 117 million people in the workforce,which is good news for the many companies setting up operations throughout the country.