Mexico as a growth oriented economy

By Adina Moloman

Source: Notimex, Financial Post

During a symposium held in London a few days ago, Jim O’Neill, the Goldman Sachs  chief economist, mentioned that Mexico will become the world’s seventh largest economy by 2020 and contribute 7.8% of the global GDP, more than Russia and India.

Jim O’Neill, is the creator of the acronym BRICs, first time mentioned 10 years ago. He still believes on the continuing growth of BRIC economies but also is heading his attention on other “growth” markets such as Turkey and Mexico.

Mexico does not belong to the “BRIC” economies ((Brazil, Russia, India and China), but fits perfectly on a new classification made by the same author in 2010, known as “growth-oriented economies”.

The eight countries in the growth markets are the four BRICs, and, in addition, Indonesia, Korea, Mexico and Turkey. The director of Investment Funds for Goldman Sachs, Jim O’Neill was given the definition of a growth market based on the fact that each country has 1% or more of global gross domestic product.

Jim O’Neill also mentioned during the same event “Mexico week” in London, that this year Mexico is expected to grow 3.6%, the same rate as Brazil, and in 2013, he believes that Mexico economy will grow 3.8% annually. This impressive rate growth is due mainly to Mexico Manufacturing activities.

GDP is a growth indicator but specifically is a measure of production, covering the production of consumer goods and services, even government services, and investment goods. So by that is important for the readers to understand that GDP does not capture wellbeing of the country population, living standards, etc.

Nevertheless, with the GDP limitations mentioned before, Mexico leading to the top tenth economy it definitely involves a lot of work and coordinated industrial programs and the result is being a major actor on world arena