Mexico is a more attractive destination than Brazil for investors, according to an article published in the Business Insider.
Mexican GDp has grown consistently upwards of 3% over the last year, and its economy expanded an impressive 4.6% in the first quarter of 2012, showcasing its relative stability and potential over neighboring Brazil.
Mexico, however, has the United States, which is still home to the largest market in the world period. Mexico exports more cars to the United States than Japan, Korea and Germany; Nissan, Mazda and Honda have all announced they would build new factories in the country, along with new investments in the aerospace and electronics sectors also on the horizon.
Mexico and Brazil both suffer from inadequate infrastructure, bureaucracy and corruption. What sets Mexico apart is its fiscal footing; the country’s private sector debt-to-GDP is just above 20%, while Brazil’s is around 50%. Furthermore, Mexico has inflation under control and its open economy, free trade policies and increasing competitiveness have made it a hot spot for foreign investments.
