A Manufacturing Company In Mexico Indicates Bright Future

Any Manufacturing Company In Mexico has much to boast about after the San Antonio’s Express-News and Houston Chronicle’s recent series spotlighting Mexico’s recent economic growth was released. Ironically, while the U.S. used to treat Mexico in parent-to-child fashion, the tables have clearly turned. Some substantial indicators highlighted by Jorge Gonzalez, Dean and VP of Academic Affairs at Occidental College, when speaking at the Latin America Caribbean Forum concluded the following:

• Mexico’s Middle Class – the poverty rate has shrunk from 55% to 35%, upended by the middle class who now occupies 55% of Mexico’s economic social structure. In addition, as birth rates drop and migration slows to a trickle, there is less pressure on Mexico’s government to generate more jobs on their own
• Inflation Management – now at a mere 3.82%, it is a dramatic reversal from the 51.97% in 1995
• Foreign Direct Investment – affecting many a manufacturing company in Mexico, FDI has reached a staggering $19.4 billion in 2011, an increase from the $16 billion of 2009
• Reserves in Central Bank – with a $142.5 billion in reserve, Mexico’s imports and exports are near perfectly aligned
• At Risk – the uneven U.S economic recovery, along with its rising federal deficit, could increase pressure on Mexico’s robust economic growth. Since the North American Free Trade Agreement’s inception, the two countries have been intertwined. As such, America’s fortunes or failures could impact the future of any manufacturing company in Mexico.

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