Latin America’s power rankings are shifting this year and Mexico is emerging as a winner.
The Mexican economy isn’t surging, but it’s surviving — and that’s a success in a year of tough economic times for the region.
Low commodity prices, plunging currencies and a stock market sell off across emerging markets have hit Latin America particularly hard this year.
But Mexico’s economy is growing, unemployment is falling and its debt was upgraded earlier this year.
That’s exactly the opposite situation in Brazil, which had been the region’s biggest success story until recently. Brazil’s economic size, performance and potential surpassed all others in the region. But now its economy is in recession, its debt has been downgraded to junk status and the future outlook appears dim.
“Every problem and every headwind that you think of with Brazil, the reverse is happening in Mexico,” says Neil Shearing, chief emerging market economist at Capital Economics.