Mexico Manufacturing Edges Higher As Chinese Wages Rise
Mexico Manufacturing has played a significant role in Mexico’s stunning comeback from one of their worst recessions in history, according to Dr. Marc Faber, author of the ‘Gloom, Boom, and Doom Report’. Believing that Mexico (the 13th most important economy in the world) is largely misunderstood, Faber identifies America’s Latin neighbor as one of the largest developing economies in the world, when measured by GDP, in front of China, India, and Brazil.
Mexico manufacturers are significant contributors to this increased development trend, as wages, that were previously a shocking 270% above that of China, have leveled off dramatically to 45%. This presents a strong recommendation for investments in mid-cap funds, according to Faber who pays particularly attention to iShares MSCI Mexico Investable Market Index Fund (EWW). As such the Mexican middle-class continues to grow and by consequence the overall economy.