Monday, June 18, 2012
Mexico’s economy grew faster than Brazil’s
Last year, Mexico’s economy grew faster than Brazil’s, and it looks set to outpace its larger Latin rival again in 2012.
Brazil’s slowdown can be attributed partly to debt-burdened consumers and the erosion of industrial production, which is tied to the recent strength of Brazil’s currency, the real. On top of that, slowing global growth, particularly in China, has pushed down prices of the commodities that Brazil exports.
Meanwhile, Mexican factories are exporting record quantities of televisions, cars, computers and appliances, replacing some Chinese imports in the United States and fueling a modest expansion.
Economically, Mexico does not appear as grim a place anymore.
“The best way to improve your image is G.D.P. growth,” said Luis de la Calle, a former Mexican trade negotiator and an economic analyst here.
Mexico’s strengthening economy underlies the glossy veneer on display as President Felipe Calderón hosts the Group of 20 leaders of major industrialized and emerging economies at the luxury beach resort of Los Cabos on Monday and Tuesday.
In contrast to the widening crisis in the euro zone, which will be the focus of the talks, Mexico will be able to point to 17 years of macroeconomic stability, low inflation, manageable debt, an open economy and increasing competitiveness. The gross domestic product expanded 3.9 percent last year, ahead of Brazil’s growth of 2.7 percent.