Mexico’s Economic Indicators and Profile
The following economic factors demonstrate an optimistic outlook for real estate investing in Mexico:
- Annual GDP growth is at 4-5%.
- Foreign direct investment (FDI) is rising steadily and totaled $16 billion in 2004.
- Annual inflation is at a practical rate of 3-4%.
- Mexico’s income per capita rate of $6,770 is the highest in Latin America, thereby making it a middle-income country.
- Institutional investors including California’s public pension fund, Calpers, are investing in Mexico real estate through mutual funds.
- Mexico bonds are included in JP Morgan’s Government Bond Index favored by institutional investors and both Standard and Poor’s and Moody’s rate Mexico’s sovereign debt as investment grade.
- Although Mexico experienced an extraordinary devaluation of fifty percent within a matter of days in 1994, the peso has regained its value and has remained steady since. Most importantly, the USA assisted in stabilizing the peso during the monetary crisis and would likely do so again.