According to CNN Money last week,the Mexican stock market is "going gangbusters this year" and Mexico is a “good buy.” The 6.7% rate of growth to date is better than the U.S. Dow Jones’ 5% gain in the same period of time. Combined with other factors,this prompted HSBC to declare Mexico a “buy” for investors.
Like much of the world,Mexico was hit hard during the 2009 recession. Mexico saw a GDP contraction of 6.9% during last year. Since the economies of the US and Mexico are so closely linked,analysts expected that Mexico would see the same slow recovery period as here in the States. However,recent projections have shown that Mexico and other Latin American countries are actually outpacing the American recovery.
In addition to the large rate of growth,Mexican imports are also beginning to penetrate the American market more than in the past. This is a sign that the Mexican economy is becoming more resistant to the downturns in economy of its neighbor to the North.
News is good from the Bank of Mexico as well. Bank of Mexico Governor Agustin Carstens said that Mexico’s economy is attracting more investors. In a statement released to the Dow Jones Newswire,Carstens stated that “Mexico’s economy and our market are attractive,so certainly expectations are for that to continue.” He also reported that capital is flowing into the country from outside investors,and the capital is concentrated in long term investments,like bonds and real estate.
In short,now is the time to invest in Mexico. Whether it’s in real estate,long term bonds or in the stock market,signs are showing that the country is experiencing a faster rate of recovery and growth than the United States. Join the thousands of other capital investors and buy a piece of Mexico real estate today.