As 2013 winds to a close, investors and analysts worldwide are taking a hard look at the future, and what they see is Mexico going strong. In fact, the nation’s economy is poised to grow at an even faster pace over the coming years, as structural reforms, the U.S. recovery, infrastructure investments and increased public spending propel Mexico ahead at an astounding rate.
PNC Financial Services Group’s Senior International Economist Bill Adams said he “expects the economy to continue expanding briskly in the months ahead,” following a growth rate in the third quarter that marks its fastest pace in more than a year. In fact, analysts predict a growth rate of at least 4 percent in 2014, which is well above the average in Latin America.
ING Investment Management International (ING IMI) believes Mexico has “a big advantage” over other emerging markets, with plenty of room to double its GDP over the next ten years. The reforms, along with strong competitiveness compared to Asia and a number of ambitious infrastructure projects are key to Mexico’s continued forward momentum.
“Analysts are pointing to Mexico as a great investment opportunity for the near future,” writes Fox News.
All of this has caused investors worldwide to maintain a bullish outlook on Mexico for 2014 – a trend that is expected to continue well into the foreseeable future. Deputy Finance Minister Fernando Aportela also pointed to Mexico’s strong manufacturing sector and a steady increase in the total number of exports as further reasons why the nation’s economic outlook remains favorable.
“There are indications of solid sources of growth for the Mexican economy,” Aportela stated at a recent press conference.
The energy reforms passed in mid-December are also key to the nation’s future growth, leading to an average annual growth rate of at least four percent by as early as 2014. As the economy strengthens over the next 12 months, the government will ramp up spending in its budget on infrastructure, including the tender of $7.4 billion in passenger train projects and more than 250 new highway projects.
Finally, the U.S. demand recovery is playing a crucial role in pushing Mexico’s growth to new heights – both in the immediate future and the long term. This, combined with a healthy macroeconomic base and a variety of internal fiscal reforms, have made Mexico the country to watch for 2014.