2013 has been a great year for Mexico,and all signs point to continued prosperity in what has become Latin America’s second largest economy. Over the last month or so,a number of reports have emerged detailing the impressive increase of investment dollars that have been pouring into the Mexican economy this year.
“Latin America is absorbing record levels of foreign direct investment,$174 billion in 2012,up almost 7 percent from 2011,” writes Near Shore Americas. “On July 1 President Peña Nieto said Mexico would welcome a three-fold increase in FDI in 2013 over last year’s numbers; a figure that could even rival the amount of foreign investment made in Brazil.”
Mexico has already attracted more than $5 billion in foreign direct investment during the first quarter of 2013,which suggests we will see an increase of at least 60 percent compared to last year’s numbers. In addition,Mexico’s largest companies have announced that they will collectively invest upwards of $27 billion this year,according to the Mexican Council of Businessmen,or CMHN. Comprised of executives from 39 of Mexico’s largest and most successful corporations,the CMHN’s current investment plans reflect a soaring level of confidence and excitement about the nation’s bright future.
“Mexico is growing at nearly double the pace of [the U.S.] economy,” writes Nasdaq. “They’ve been averaging 3.4 percent to 4 percent per year since 2009. [The U.S.] will be lucky to grow GDP by 2 percent this year. The good news for investors is that there is still time to make big profits,if you know where to invest.”
Mexico’s stock exchange has also benefited from the recent investment boom,with shares of the country’s benchmark IPC index rising significantly during the second quarter,and earnings beating analysts’ estimates thanks in part to a wide variety of new equity offerings.
“The second quarter of 2013 was one of strong results,especially in listings,including four equity offerings and one real estate trust,” states Bolsa’s CEO Luis Tellez in a conference call with Bloomberg Businessweek. “Mexican companies raised more than $2 billion in equity sales in the second quarter.”
Low wages,a skilled workforce,a pro-business environment and a prime geographical location are just a few of the things that are making Mexico one of the most competitive nations in the world. In addition,Mexico real estate is home to a surging IT sector and an energy sector that is ripe for investment,making this up and coming nation one of the decade’s prime investment opportunities.