Mexican economy stable and solid
Writing a blog about Retiring in Mexico and Retiring Abroad is not always an easy task. Sometimes we find ourselves in the tough position of trying to speak the truth in spite of a lot of strong misconceptions. There is no shortage of negative and often downright false information about how Mexico’s economy is holding up. So it is a big shot in the arm when we see news like this article from the LA Times. According to Dickerson:
Indeed, Mexico is enjoying glad economic tidings in 2006 unlike anything it has seen in years. Core inflation and interest rates remain relatively low. The peso is stable. High oil prices have left tax coffers flush with extra cash. The economy is projected to expand about 4.5% this year, the best showing since 2000. […]
Services and retail have performed well this year, but one of the most watched industries is manufacturing. Although Mexico’s maquiladora export factories have been battered by stiff competition from Asia, the sector has rallied this year, adding nearly 77,000 jobs through August, government figures show. […]
A government-led mortgage program has spurred home building on the outskirts of Mexico City and other big metro areas. But it’s not the only factor fueling the rise. Pent-up demand for upscale housing has triggered an explosion of loft development in Mexico City as well as vacation homes for U.S. baby boomers in the coastal areas. Billions in construction contracts poured into Cancun this year to rebuild the Caribbean resort, which was pummeled by Hurricane Wilma in October 2005.
Tom Budniak, a realtor in the Mayan Riviera area, wrote a very reassuring assessmnent of the overall political situation just a few days ago and that, too seems well worth a read. His sense was that the stability of the country held up very well even under considerable pressure and hasn’t affected the market in slightest.
Driving around any of Mexico’s cities or resort and tourist areas, the number of cranes silhouetted against the sky can be overwhelming as construction strives to keep up with demand. And all of these areas are filled with people doing the building, people laying the roads and selling the houses. We see our part as just another in a vibrant, growing, changing economy, where your investment will be as stable and solid as any you make in the US or Canada. In Mexico, we see hope paying off everyday.
Add comment December 7th, 2006