The Mexico exchange traded fund ( ETF ) had a solid second quarter, in line with the country's economic performance. But Mexico's Central Bank is holding off on making any big moves just yet.
Some of the good things happening in the economy lately include:
- Exports have been vigorous this year, according to bank Governor Agustin Carstens.
- Jonathan Levin and Andres Martinez for BusinessWeek report that the bank raised its forecast for job creation this year to as high as 625,000
- The benchmark lending rate will remain at 4.5% until any indications of inflation are apparent, perhaps indicating that it doesn't expect a major change in price pressures. [ U.S. Economy Hits Mexico ETF. ]
- The capital markets have picked up, rebounding off 2009 lows.
- The economy has demonstrated its revival by expanding more than 4 % from a year earlier after contracting 2.3 % in the last three months of 2009.
On the downside is a widening divide between the country's haves and have-nots: 32% of the top earners take home 55% of the country's total income.
For more stories about Mexcio, visit our Mexico category .
- iShares MSCI Mexico (NYSEArca: EWW)
- iShares S&P Latin America 40 Index (NYSEArca: ILF) 24.8% Mexico
- CurrencyShares Mexican Peso Trust (NYSEArca: FXM)
- Market Vectors Latin America Small Cap (NYSEArca: LATM) 22.8% Mexico
- SPDRS S&P Emerging Latin America ETF (NYSEArca: GML) 20.3% Mexico
Read the disclaimer ; Tom Lydon is a board member of Rydex|SGI.
Tisha Guerrero contributed to this article.