The quarter-on-quarter drop of 1.12% in the second quarter comes to an annualized decline of 4.4%, which marked a great improvement from the previous quarter, report Nicholas Casey and Anthony Harrup for The Wall Street Journal. Alfredo Coutino, director for Latin America at Moody’s, thinks Mexico may step out of the recession by the end of the third quarter.
Why is its ETF doing so well? Thank Mexico’s robust telecom sector, in which the ETF has a 38% weighting. Forecasts for the sector in Latin America call for continuing strong demand and strong revenue growth throughout the continent.
- iShares MSCI Mexico Investable Mkt Idx (EWW): up 38% year-to-date
For more information on Mexico, visit our Mexico category.
Max Chen contributed to this article.