Investment in Mexico Surpasses Brazil
Global investment interest and economic growth has switched its focus towards Mexico and away from Brazil in the last year. This is partly in due to Mexico’s strong economic ties to the United States. While Brazil finds itself closely involved with China, Mexico has continued to foster its economic relations with their neighboring United States. Portfolio investment in Mexico is on the rise and overall, Mexico’s economy is growing at a higher rate than anywhere else in Latin America. The gross fixed investment in Mexico rose 1.9 percent in April from March.
In addition, there is an increasingly impressive amount of growth within the Mexican banking sector because of low debt in comparison to countries like Brazil. Audrey Kaplan, a portfolio manager for Federated InterContinental (RIMAX) commented on the economic situation in Mexico. The portfolio manager of RIMAX stated, “The economy has been doing well and that’s got a lot to do with the U.S. Two years ago people said the U.S. would go into a flat growth or no growth environment. It has not, and that’s been beneficial to Mexico.”