Could a falloff in direct foreign investment to Mexico hurt the country’s exchange traded fund (ETF)?
The country’s economy ministry said that such investment fell 36% in the first quarter of this year, owing much to the slowdown in the United States, reports Adriana Barrera for Reuters.
For the full year, direct foreign investment is predicted to be 14% lower than it was in 2007.
On the flip side, Mexico seems to be gearing up for a housing boom, and perhaps it will help Home Depot (HD) offset any damage done by the gloomy U.S. market.
The Mexican government hopes to spur construction of 16 million new homes by 2030, reports Jeremy Schwartz for Cox News Service. Home Depot is the largest home improvement retailer in Mexico, with annual sales of more than $1 billion.