“This is important,” explains Gerard Cassidy, RBC analyst. “Mexico has a well-educated workforce when it comes to manufacturing jobs, and so companies are very willing to commit capital into Mexico to build out manufacturing plants. [Defensive ETFs to Shield Against the Fiscal Cliff]
The biggest threat to the economy in Mexico is inflation, with a targeted rate of anywhere from 2% to 4% expected in 2013. Since the Mexican economy is export driven, some of its success depends on the health of developed nations such as the U.S.
iShares MSCI Mexico Investable Market Index ETF
Tisha Guerrero contributed to this article.