MercoPress. South Atlantic News Agency
Good year ahead for Mexico while investors feel frustrated with ‘Brazil cost’
Brazil and Mexico, Latin America’s two largest economies could be facing a 2013 of contrasting performance and prospects. Brazil has been hit by weakening Chinese demand for commodities, while rival Mexico, the new darling of foreign investors, is posting increasingly strong growth. The figures speak for themselves. Read full article
Comments
Disclaimer & comment rulesBrazil needs major reforms to liberalise its economy to prevent an acceleration in inflation every time it's growth starts to take off.
Dec 26th, 2012 - 09:50 am - Link - Report abuse 0Brazil thinks that because it has a large population that it can grow mainly through domestic consumption. India has made he same mistake.
Brazil has lumbered itself with the Mercosur market totalling 275 million people that believe they can look inwards for growth and prosperity.
Mexico has joined up with 330 million others to create a market of 460 million that look outwards for growth and prosperity.
At the same time Mexico has formed the Pacific Alliance with Peru, Colombia and Chile-smaller than Mercosur and yet growing faster. Again outward looking.
There is a theme here that Brazil isn't following.
Until Brazil deals with the massive poverty, endemic corruption and under-educated population it can never be considered a world power.
Dec 26th, 2012 - 10:43 am - Link - Report abuse 0@1@2
Dec 26th, 2012 - 10:58 am - Link - Report abuse 0And Dilma needs a real finance minister not the apology for one, Mantega.
Brasil are on the cusp of great things or complete disaster. Dilma was shown to be ‘soft’ when she claimed to restrict wages and in the end finished up more or less giving the workers what they demanded.
And like elsewhere in SA the fiscal drag of unproductive government ‘employees’ is going to hurt them more as time goes on.
It must be of concern to Dilma when Mexico are ahead of them and really do not want the on-cost of dealing with Brasil.
Mexico already exports more manufactured goods than Brazil and Argentina put together.
Dec 26th, 2012 - 01:14 pm - Link - Report abuse 0Manufactured goods is the way out of poverty, not commodities. China did not become the gigantic economy it is today exporting soy beans or olive oil, but rather televisions, cellulars, refrigerators and the like.
South America needs to a hard look at its commodity dependence. I see Peru and other south american economies expanding their economies thanks to massive exports of primary goods, it may good while it lasts, but it won't last long.
Mexico is taking the leadership of Latin America and it will be at least for 1 decade, since I see a huge economical slowdown and recesion in Brazil just after the huge carnival that is up to start in 2013 (cup America), 2014 (world cup), 2016 (summer games) and so on. Brazil is wasting spending in parties, while Mexico only saving and investing in productive infrastructure and the most worrying is that all that investment in Brazil is already public debt and the party haven't yet started.
Dec 26th, 2012 - 04:21 pm - Link - Report abuse 0I can see why “investors” favour Mexico, its the only country that has consistently (if narrowly, and sometimes with fraud) rejected the left. The human cost, especially under Calderon with the explosion of drug and crime related violence, has been immense
Dec 31st, 2012 - 01:19 pm - Link - Report abuse 06
Jan 02nd, 2013 - 07:38 am - Link - Report abuse 0Sigh, This is precisely why I think use of left or right labels for description of political positions oversymplies actual political characteristics in most countries, principles can be simple, actual ppl politicians and politics in general aren´t simple at all .
In reality Mexico has been experimenting with the left since 1921, after the Mexican revolution the new constitution endorsed unequivocal socialist principles, with Lazaro Cardenas being remembered as the principal representant of the left in Mexico and yes, he was from the PRI, also, during the PRI regimen there were presidents with left, right, and center personal prefered policies, because PRI is in reality a very pragmatic party that takes the social/political or economic policy that it thinks needs atm. Also, lest remember, Obrador and most older representants of PRD used to be part of the PRI. So excuse me if I think your oppinion doesn´t fit at all Mexico actual or past political characteristics.
The reason why the left has been “rejected” lately has had more to do with badly and sometimes caothic behavoir from its representant´s from the left than with it itself on principle. But even with all that, I think Marcelo Ebrard or Mancera may have a chance at presidency in 2018, especially if the PRI fails to convice ppl of its capabilities, or symply because it´s the PRI XD, I personally would vote for Mancera if he decided to go for it.
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