Latin America

Mexico’s Moment

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98244511Mexico has made the headlines for many reasons: violence, drug trafficking, mafias, cartels, massacres, police brutality, corruption, and civilian deaths. Much destruction has been caused–especially in the northern region–creating a situation akin to the drug wars that plagued Colombia pre-President Santos. Yet, beneath this unfortunate rubble, Mexico is extremely important in the ever-changing landscape of the Americas and emerging markets.

Mexico’s GDP has seen impressive growth since early 2010. Mexico announced in November 2011 that its economy grew at a rate 3.75 percent year to date, continuing its momentum from the prior quarters. In the third quarter of 2011, the GDP expanded by 4.5 percent. Also, Mexico’s Foreign Direct Investment (FDI) raised a few unexpected eyebrows, totaling close to $31 billion in 2010–a billion more compared to 2009. These are astonishing figures, considering violence in Mexico has escalated instead of subdued during this time period.

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