Mexico on Pace to be Best LatAm Performer

Shearing and other experts project Mexico’s economy will grow about 2.5% this year, ranking among the top performers. Some project Mexico to be the best performer next year.

By contrast, Brazil’s economy is expected to shrink 3.3% this year, according to Bank of America (BAC)’s forecast. Experts say its recession will likely extend into next year.

Stocks are doing a little better in Mexico. Its stock market index, IPC, is barely positive so far this year. But Brazil’s Bovespa is down nearly 8% over the same time.

Just as Brazil’s worst problems — such as the Petrobras scandal — are self-inflicted, some of Mexico’s economic resiliency are self-made too, economists argue.

Brazil is still Latin America’s biggest economy, and Mexico is the second largest. But that gap is steadily narrowing and Mexico has many things going in its favor at the moment to make it Latin America’s best economy.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza