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Mexico first quarter expands only 0.8%
By: Emerging Money
Mexico ( EWW , quote ) Q1 GDP expands 0.8% from Q1 compare to first quarter last year. "Southern Texas" is growing much slower than its neighbor to the north.
A lot of the infrastructure and industrial growth has really fallen off. Services remain strong but question remains whether the Mexican economy becomes a victim of its own success.
In last 2 years Mexico has been a better labor market than the U.S so the migrant worker actually reversed immigration and emigrated back.
But now the stronger currency and higher costs actually may be crimping growth. Meanwhile the U.S. economy may be seeing seasonal falloff in Q2 but will be outperforming not only Mexico, but many of the "high growth" emerging markets.
Russia reported a dismal 1.6% Q1 GDP this morning. Brazil is growing +1.2%, South Korea 1.5% and the list goes on. And we wonder why the S&P 500 is outperforming emerging markets.