Mexico’s real growth expectations starting 2015

By Adina Moloman

Source: Reuters

According to Carlos Slim, one of the world’s richest businessmen, the investment strategy in Mexico for the next few years is based on restoring policy stability.

The businessman is making emphasis on the importance of boosting investment and productivity growth in the construction sector, infrastructure, energy sector and education.

A few steps were made in order to unleash Mexico’s economic potential.

For instance Mexico’s central bank is keeping interest rates as low as possible by ending government waste and balancing the budget since its interest rates are now at a record low of 3 percent.

The plan is building a more diverse economy – through support to Manufacturing in Mexico, Innovation systems, Advanced Services, Agriculture, Education, Tourism and Research.

The Mexican economy grew by 1 percent in 2013 and the forecast for 2014 is less than 3 percent.

Starting 2015, Mexico’s real GDP is expected to increase from US$10,600 per capita in 2013 (calculated by the International Monetary Fund) to US$15,000 per capita. According to the businessman after reaching this number “it’s hard to go back to underdevelopment again”.

Mexico’s government in the last five years took important steps to promote infrastructure investment since 4 percent of GDP was directed toward infrastructure, doubling the amount spent normally.

Mexico is also increasing initiatives to help encourage pro business policies and relatively high quality workforce in order to make the country a very attractive market for foreign direct investment (FDI).

United States and the countries of the European Union continue to be the largest investors in Mexico in which FDI has gone mainly to the production in Mexico of manufactured goods for export. With the lately structural reforms Mexico is open to foreign direct investment (FDI) in most economic sectors.