Mexico’s economy and exchange traded funds (ETFs) are expanding so quickly that not even fierce competition from China is getting in the way.
Mexico’s economy grew 7.25% in August from a year earlier, according to a national statistics agency. Jonathon J. Levin for Bloomberg BusinessWeek reports that economists who were expecting 6.5% growth found themselves pleasantly surprised. [3 ETFs for Mexico’s Growth Forecast.]
Mexico has yet more room for expansion, since the country hasn’t fully taken advantage of its trade agreement with the United States. According to The Economist, the “Interpuerto,” a customs-clearing zone to speed goods on their way to the United States could grease the economy’s wheels once it gets going.
The aim of the $2 billion project is to allow cargoes to skip the long lines at customs posts on the border. Mexico is heavily dependent on U.S. demand, and it should push the country past its current 12.2% share of the American market in the years to come. [Mexico ETF Unfazed By Cartel Violence.]
- iShares MSCI Mexico (NYSEArca: EWW) is up 11.9% in the last three months
- iShares S&P Latin America 40 Index (NYSEArca: ILF): Mexico is 24%
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.