Major Canadian newspaper The Globe and Mail has recognized the important and ever-growing connection between Mexico’s booming economy and Canada’s future,even as many of the world’s other industrialized countries continue to struggle with high unemployment numbers and mounting debt.
“The unemployment rate in Latin America’s second-largest economy has fallen to its lowest level in more than four years,at 4.5 percent,” writes The Globe and Mail. “Economic growth [in Mexico] is outperforming most other countries and the stock market is hitting record highs.”
In addition,Mexico’s strong jobs market and steady economy have boosted the nation’s emerging middle class,and also have many benefits for Canada. Already Mexico real estate is the fifth-largest destination for exports from Canada,causing an expanding number of Canadian businesses to consider opening up operations in Mexico. This is evidenced in part by the fact that trade between Canada and Mexico has grown more than eight percent between 2002 and 2011,a trend that is showing no signs of slowing down in 2012 and beyond.
Mexico’s significant population of more than 112 million also plays an important role and is expected to show an increased demand for Canadian products,as well as to supply a ready,willing and educated workforce for Canadian corporations that open up locations in Mexico.
“Mexico’s recent growth run is impressive and is set to continue,” shared Peter Hall,who is the chief economist at Canada’s Export Development Bank. “The country’s economy is expected to expand 3.5 percent this year – stronger than projected growth rates for Canada,the United States and much of Latin America.”
Other factors that are expected to help Mexico continue its impressive forward momentum include recent amendments to modernize labor laws,slowing inflation and interest rates that remain at record lows. Although many of the world’s economies,including China and Brazil,have experienced significant slowdowns in 2012,Mexico exhibited remarkably smooth growth,thanks to steady consumer spending,strong government investment and robust exports.
“The bottom line,” shared Hall,“is that over the coming months this market will be one to watch.”