Foreign investment in Mexico has continued to grow in 2019 despite continued uncertainty surrounding USMCA, the renegotiated NAFTA deal, which has yet to be ratified by the U.S. Congress. Mexico received more than $10.6 billion in foreign direct investment dollars during the first quarter of this year, which is up 7 percent from the same period in 2018. According to lead Economic Advisor to the President, Larry Kudlow, investors are still betting on infrastructure, solid financials and the consumer in Mexico, where positive consumer sentiment and consumption remains strong and is expected to drive economic growth slowly but steadily.
“Mexico has strong macroeconomic fundamentals and we expect growth to continue”, wrote Deloitte, one of the world’s largest accounting organizations. “Income expansion and consumption will be supported by falling inflation and minimum wage hikes”.
Growth is still in the forecast for Mexico’s 2019 economic activity, which was up .9 percent in June and remained positive for three out of the first four months of the year. According to current estimates, the likely scenario is that Mexico’s economy will continue to expand by at least 2 percent in 2019, but the longer-term growth outlook is even brighter. In fact, the Conference Board’s Index of Leading Indicators has also been positive for most of 2019, pointing to steady if not robust gains in Mexico’s GDP later this year.
“Mexico has a strong economy with a gross domestic product that ranks 15th globally”, wrote Business Insider.
With four times the population of Canada and only 2/3’s of the GDP, there is still plenty of room for economic expansion in Mexico! The bottom line? Mexico might not be the fastest-growing emerging market, but it is definitely one of the most attractive for investment, thanks in part to smart, ongoing government reforms and cooperation with the U.S. on trade, which bodes well for future economic activity.
One of the most rewarding (not to mention stress free) ways to invest in Mexico is to buy real estate in one of the country’s top destinations. Whether you decide to invest in raw land or buy a turnkey vacation home rental, the ROI is incredible and Mexico real estate offers a secure, proven alternative to the stock market.
“Mexico remains a top destination among Canadians and Americans for both tourism and retirement”, wrote Live and Invest Overseas, which also named Mexico one of the world’s 10 best places to buy real estate overseas in 2019. “The country is also enjoying strong growth in the local tourism markets as the country’s middle class continues to expand”.
Forbes agrees, citing Mexico’s two extensive coastlines, picturesque mountain towns and charming colonial cities, as well as the ancient Mayan ruins, lush tropical jungle, verdant rainforest, rivers and lakes. Mexico is also the most accessible overseas haven from the U.S. and Canada, which has made it home to the biggest established populations of American expats in the world. In fact, more than one million Americans live in Mexico and more than 500,000 own property in the country’s top destinations. Today’s Mexico real estate investors are enjoying a low cost of living at the current exchange rates, and new arrivals are getting fantastic bargains on vacant land, villas, vacation home rentals and turnkey condos.
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