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.
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