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Motley Fool Global Gains / GGV: Latin America
|Subject: An increasingly competitive Mexico||Date: 6/18/2012 9:48 AM|
|Author: TMFCogitarius||Number: 820 of 825|
'Mexico’s low wages, cheap peso and surging auto shipments to the U.S. -- which buys 80 percent of its exports -- have increased manufacturing competitiveness during the past decade as labor costs in China and Japan have risen. '
'This has put Mexico’s economy on a sounder footing than Brazil’s to weather a prolonged global downturn. After trailing growth in Latin America’s biggest economy during the past decade -- and watching as a commodities boom allowed Brazil to increase wages an annual average 3.4 percent above inflation from 2005 to 2011 -- Mexico is poised to outperform Brazil for the second consecutive year.
President Felipe Calderon’s government forecasts gross domestic product will expand 3.5 percent this year and says exports will probably surpass a 2011 record of $350 billion. By contrast, Brazil will grow around 2.5 percent, according to a central bank survey of economists this month.'
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