Analysis

As US Struggles, Mexico’s Economy Surges
Mexican President-elect Enrique Pena Nieto in London after a meeting with British Prime Minister David Cameron on October 16, 2012. Nieto has promised to open Mexico’s oil industry to foreign companies and also crack down on corruption. (Photo by Oli Scarff/Getty Images)
October 30, 2012
| Economics, Energy
| The Americas
Summary
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Despite the drug violence that has dominated headlines, Mexico has a resilient and healthy economy that investors should be eyeing with interest. In the last 17 years, the Mexican economy has become one of the world’s most open and business growth has been steady despite the economic difficulties faced by some of the country’s biggest trading partners.
Since joining the North American Free Trade Agreement (NAFTA) in 1994, Mexico has seen impressive rates of growth. It is now the thirteenth largest economy in the world, with higher rates of exports and imports to gross domestic product (GDP) than Brazil or China. However, inflation could drive up interest rates in the short run, and corruption continues to be a serious impediment to foreign direct investment (FDI).

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