Mexico Positions Itself to Join the World’s Top Economies

gerardo cornejo velez mexico

Mexico is a far more powerful economic entity than many (including fellow Mexicans) realize, and the nation is predicted to just continue strengthening over time.  While many other nations still view Mexico as a Third World Nation, the truth is, according to the International Monetary Fund, Mexico’s Gross Domestic Profit(GDP) is just shy of the top 10 in the world. Mexico’s situation is an interesting one for a few reasons.

For one, Mexico is currently in limbo between the world’s negative perception of its overall economic and social health, and the reality of its relative strength in comparison to nations like Italy and the UK. Many around the world still imagine a state of affairs where all Mexican peoples are fighting to emigrate into the United States, when in truth, a large number of Mexicans are actually moving back due to the economic promise of their home country.

The promise is real. The economy within Mexico increased by 2.5% in 2015, and is predicted to see growth of as much as 3% by the end of this year. This is an equivalent amount of predicted growth to that of the United States of America. Mexico is also home to the the largest automotive plant in the West, and is the third largest automobile manufacturer in the Western Hemisphere as well. In comparison to the Eastern nations, Mexico looks to be positioning itself to be a great, if not one of the greatest, economic powers in our near future. Whole the EU fights amongst itself, China works towards social and economic stability, and the Middle East works though its host of ongoing internal struggles, Mexico stands shoulder to shoulder with all of these nations in terms of relative stability and promise.

There is an interesting clause in Mexico’s growth and progress, that one would be remiss in not acknowledging. The North American Free Trade Agreement (NAFTA) has created a synergistic relationship between the imports and exports between Mexico and the United States. About one third of Mexico’s Gross Domestic Profit is made of exports, of which 80% of those exports go directly to the United States. Additionally, the United States’ active decision to start sourcing more imports from Mexico has led to a significant (positive) impact on Mexico’s economic growth. It’s this intertwined economy that is a source of skepticism for many Mexicans when assessing their country’s true economic position.

That being said, it would be unwise to dismiss Mexico’s position of economic power based purely on its reliance on the US economy. The reality is that all economic powerhouses are intertwined, and Mexico’s predicted, continued growth is well founded. While it may take some time for Mexico to shake its image of being a poverty and crime riddled nation, it would be wise for any nation to underestimate Mexico’s ability to move forward and push into the top economies of our world.

 

To see the artciles that inspired this blog, please see Business Insider & Maudine Economics

 

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