Positioned at what Time Magazine calls “a pivotal point in Mexican history,” the nation’s leaders are making moves to take this emerging market’s growing economy to the next level.
“After one year in office,Peña Nieto has passed the most ambitious package of social,political and economic reforms in memory,” writes Time. “Global economic forces,too,have shifted in his country’s direction. Throw in the opening of Mexico’s oil reserves to foreign investment for the first time in 75 years,and smart money has begun to bet on peso power.”
Most recently,Moody’s gave Mexico’s government bonds an A-- rating for the first time in history following a reassessment of the nation’s growing economy. In fact,Moody’s ranked Mexico higher than Brazil and it is the only Latin American nation besides Chile to get an “A” rating at all.
“In the Wall Street investment community,I’d say that Mexico is by far the favorite nation just now,” Ruchir Sharma,head of emerging markets at Morgan Stanley told Time Magazine.
President Obama will arrive in Mexico for a North American leaders’ summit this week and is expected to discuss a variety of new partnerships and initiatives that will increase economic growth in both nations. Peña Nieto has already delivered bold and tangible results,building a powerful legislative coalition that has proven its ability to get major things done – such as passing a measure last fall that will allow foreign investment in Mexico’s substantial oil sector for the first time in more than 75 years,despite serious opposition from certain political groups.
In addition,Peña Nieto was able to pass groundbreaking education reform last year that will completely overhaul the nation’s public education system. He is also in the process of tackling corruption in its lucrative telecom sector,as well as making long-overdue adjustments to the tax code. Of course,Mexico’s manufacturing sector is also experiencing a serious boost,thanks to its competitive geographical location,young and educated workforce and market-friendly investment incentives.
“Rising labor costs in China have made Mexican wages cheaper by comparison,” writes Time. “Meanwhile a slowdown has dampened foreign enthusiasm for Brazil’s economy,making Mexico more appealing.”