According to a Wall St. Journal report, 31 separate economists have raised their economic growth forecast for Mexico for 2010. Surprisingly, this good news comes at a time when recent U.S. data indicates a economic slowdown for Mexico’s northern neighbor.
Analysts expect Mexico’s economy, which is already surging out of the recession, to increase 4.5% this year, up almost a full point from their estimate in June. Mexico’s economic boost is primarily coming from a surge in manufacturing exports and private investments.
The Mexican economy is benefitting from one of the lowest business tax environments, double-digit bank loan growth, lower unemployment, low national debt, an up-tick in tourism and increased inflow of real estate investments. Mexico has one of the most stable economies worldwide coming out of the recession and Mexico’s President, Felipe Calderon, expects to have a balanced budget in 2010 as revenues recover along with the economy.
Mexico’s economic revenues grew $1.4 trillion in the first 6 months of 2010 and is expected to improve even more in the second half, putting Mexico on pace to be one of the few governments world wide to boast a balance budget.
by Michael Zenn