World Economic Forum 2012 to Take Place In Mexico

Beautiful coastal beach town, Puerto Vallarta, will be the host of the 2012 World Economic Forum on Latin America this April 16-18, 2012. The forum will take place to address Latin American’s global economy and the upcoming presidential elections. Marisol Argueta de Barillas, Senior Director, Head of Latin America for the World Economic Forum stated that, "Latin American countries continue to be an attractive destination for investment and the region demonstrates strong finances, continued economic growth, and social development.”

Mexican Homebuilders Bonds' Yields Up 4x

President Calderon's plan to reduce housing shortages, which in turn makes them less vulnerable to swings in the economy, is working. Mexican homebuilders' bond yields are rising as much as four times faster than that of corporate peers. So much so that banks like Citigroup Inc. and Scotia Capital are recommending buying the debt "as a bet subsidies [that] will help the companies weather slowing growth." For instance, according to data compiled by Bloomberg.com, Mexico’s third-biggest homebuilder, Urbi Desarrollos Urbanos SAB's yield on dollar bonds due in 2020 jumped 87 basis points this month to 8.29 percent. Emerging-market corporate bond yields climbed 10 basis points.

Auto Production Up 16% in July to Reach Record 209,534 Units

The Mexican Auto Industry Association, said that this July vehicle production grew 16% and exports grew another 24% to 177,843 units. That was also a record for a month of July, said Mexican Auto Industry Association President, Eduardo Solis. Domestic auto sales, which have been rising at a slower rate than exports, rose by 11% in July to 68,533 vehicles. The auto industry is Mexico's largest single manufacturing sector, and production is frequently an early sign of strength in overall manufacturing.

Made in Mexico: The New China

It's no secret that Mexico's economy is booming...but did you know that it's becoming the new China in terms of exports? Mexico's place as an emerging market is largely due to it's export industry. Mexico's share of the global export industry was 12.5% in 2010, the highest in a decade. While the perception has been that China's cheap labor and large production capabilities are greater than Mexico's, the Financial Times states that Mexico could become the U.S.'s second-largest source of imports.

What are your thoughts on the subject? Do you think Mexico is bound to become the next China? In what ways?

Please leave me your comments below :)