Three reasons to be optimistic about Mexico and its economy
The world may same a place in which most major economies are experiencing some sluggishness, but there are reasons to hold optimism for Mexico and its economy.
When many people think of Mexico, the first thing that comes to mind is a country with a Third World economy. While it is true that Mexico has social and regional economic disparities, there are other indications that, comparatively speaking, it is becoming somewhat of an economic power. Despite having a long way to go to improve the country’s overall situation, the country, comparatively speaking, is gradually joining the ranks of the world’s largest and most diversified economies. There are three principal reasons to be optimistic about Mexico and its economy:
1. Its strong relationship with the United States.
While other powerful economic regions in the world, more specifically China and the European Union, are in the doldrums, North America, and Mexico in particular, is an island of relatively modest, but consistent growth. Both Mexico and the United States grew at about a 2.5% rate last year. Prognostications for Mexico are that for this year and the next few subsequent years growth will be in the 3% range.
2. Significant development in its manufacturing sector.
Although as mentioned above the country faces significant challenges, the state of its manufacturing sector presents another reason to be optimistic about Mexico and its economy. Mexico is home to some of the world’s largest OEM automotive assembly plants, as well as has received large investments in the aerospace industry over the last decade. Today Mexico boasts the presence of major global aerospace players such as Bombardier, Safran, INNOVA, General Electric, Honeywell and others within its national borders. Its membership in the NAFTA and the Trans-Pacific Partnership has also bolstered its global economic credentials.
3. Mexico’s economy is bigger than you might think.
Today Mexico is the world’s 11th largest economy. Given economic events within the EU, the nation may break into the top ten in the foreseeable future. Because of its geopolitical stability compared to many regions, as well as its favorable cost of doing business, vast amounts of investment from the US, as well as from other countries, continues to pour in.
Although some continue to site Mexico’s negatives, it is undeniable that the country is on the rise in several critically important ways. These days there are important reasons to be optimistic about Mexico and its economy.