Euromonitor International, one of the world's leading independent providers of business intelligence, said yesterday, that Mexico will overtake Italy to become the world’s tenth largest economy within the next 9 years.
By 2020, Mexico’s GDP (gross domestic product) output will reach $2.84 trillion, compared with Italy’s projected $2.46 trillion, putting Mexico only a step away from reaching other major world economies including France, UK, Brazil and even Germany.
Trumping China, Mexico’s close proximity and duty-free access to the U.S. via NAFTA currently makes Mexico the cheapest place to manufacture goods bound for the U.S. In fact, many Chinese manufacturers are now moving their manufacturing facilities to Mexico, making China a top investor in Mexico’s burgeoning economy.
Mexico is also benefiting from one of the world’s lowest business tax structures, cheap labor costs, lower unemployment, double-digit bank loan growth and a 4.5% economic surge out of the recession, higher than many other major world economies, including the U.S. Mexico is also seeing massive foreign investment from banking sectors, institutional investors and private real estate developers.
For example, Playa del Carmen in Mexico’s Riviera Maya was recently named “the fastest growing city in the world” by the Guinness Book of World Records. The sleepy town of Tulum, just 40 miles to the south, with the imminent construction of a new International Airport and the influx of 3 million new visitors, is anticipated to grow even faster. Some of the world’s largest real estate development companies and service providers are bidding to be involved in this economic expansion, including Carlos Slim’s (world’s wealthiest man), IDEAL Construction.
by Michael Zenn