Mexico and the U.S. have been neighbors for long but it is only recently that both the countries have realized the potential of economic co-operation. American investors now prefer Mexico for Latin America exposure leaving Brazil behind. This trend is in vogue due the varied opportunities offered by the Mexico real estate. Brazil is undergoing economic distress whereas Mexico displays a stronger GDP growth. Mexican economy was resilient to recent global economic meltdown and hence has been maintaining stability. Also there has been stable wage growth which has made it a better market than China where wages rose steeply.

According to fund tracking firm EPFR Global in Cambridge, Mass it is stated that American retail investors buying up mutual funds and exchange traded funds from their Ameriprise Financial advisors and their home broker accounts pumped money into emerging market equity funds for the 11th straight week in a row. Investors would obviously go for a market which shows signs of growth. Mexico totally fits the bill as it is a promising and upcoming economy with a booming travel and real estate sector . With the new government policies the country is transforming into market oriented. It is now realizing its potential and how it can be mutually benefited by maintaining cordial relations with its neighbors.

Mexico-focused equity funds have now taken in fresh money for 10 weeks in a row. Over the last 12 months, the iShares MSCI Mexico (EWW) ETF rose 25.91 percent. Infact American business magazine Forbes state that, “Mexico’s economy and its banks are likely to be supported and accelerated by positive demographics, hitting a sweet spot in 2020,” writes Forbes. “Current projections point not only to Mexico showing one of the strongest levels of population growth among major economies, but also the greatest fall in the proportion of young to old, relative to the working age population.

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