Spanish Bank BBVA Bancomer will reportedly invest more than $3.5 billion dollars in Mexico over the next four years,highlighting the bank’s growing presence in Latin America. The money will be used to renovate its branches,upgrade information technology and to fund the construction of new operations centers,as well as a new corporate headquarters.
“We are convinced that,in the coming years,Mexico has been consolidated as one of the most important and dynamic economies in the world,and will lead global growth,” stated Francisco Gonzalez,executive chairman of BBVA,according to a report by NASDAQ. “The investment is the largest in the history of BBVA Bancomer.”
As the biggest bank in Mexico,it has already attracted around 21 million customers and claims between 20 and 30 percent of the nation’s market share in loans. In fact,despite the down economy,in 2012 BBVA reportedly earned more than €3.3 billion in Mexico alone.
“While Spain’s economy struggles,overburdened by debt,Mexico’s economy is more balanced and better poised for growth,” writes Forbes. [Following the global recession in 2008] “Mexico reported a growth rate of 5.5 percent in 2010 while Spain’s economy continued to contract.”
2011 and 2012 told more of the same story,with Mexico’s economy vastly outperforming the economies of both Spain and Brazil. In addition,at 4.9 percent,Mexico’s unemployment rate is lower than Spain’s 26 percent and the U.S.,which hovers around 7.6 percent.
In addition,Mexico’s President Enrique Pena Nieto has pledged to improve the nation’s annual growth rate,announcing a goal of at least 6 percent each year. This effort will likely be bolstered by a number of progressive structural economic reforms that the president is currently working to develop that – when put into action – are expected to catapult Mexico’s economy into overdrive.
“Mexico has a solid and robust financial system,” stated Mexico’s President Enrique Pena Nieto in response to BBVA’s announcement,according to Forbes and the Financial Times. “This is Mexico’s moment... we are determined to modernize our economy. We will detonate higher and sustained economic growth.”
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