As reported in the Wall Street Journal,the economy of Mexico continued expanding in the 3rd quarter with major upticks in industrial production,agriculture output and services.
The National Statistics Institute said that the Gross Domestic Product (GDP) which measures output of services and goods,grew 5.3% in the 3rd quarter from the same time a year ago. Compared with the second quarter,services clearly outpaced all other sectors with a 1.84% growth,whilst industrial production edged up 0.93% with agricultural production finishing up 1.46% higher.
Manufacturing exports have led the charge for an economic rebound this year so far with domestic demand expected to contribute even more growth as employment levels get better following the recession of 2009.
Morgan Stanley reports that the main tailwind for consumption has been persistent job creations,which has led to higher incomes. As the wages increase so does the middle class. According to Businessweek,the middle class is exploding,and that is good for US business.
The ranks of those in the middle class here in Mexico,which constitute those making roughly between $8,000 and $50,000 a year have swelled to almost 10 million families. That is equivalent to almost 40% of Mexican households,up 10% from just a few years ago. Women are having fewer children throughout Mexico and joining the workforce which gives households more disposable income.
Home ownership is another key factor in the stabilizing of Mexico and its middle class. It allows every family a chance to build equity,establish credit,and ascend the economic ladder. The country is in the middle of a housing boom that mirrors that of America's post World War 2 expansion. According to Bloomberg,President Felipe Calderon,has pledged 250 billion dollars of public and private spending towards infrastructure until 2012,increasing values for mexico real estate.
There has never been a better time to capitalize and participate in Mexico's transformation into a global powerhouse.