Daniel Chavez Moran on Mexico’s Economic Rebound
Daniel Chavez Moran notes that although the economic meltdown of 2008 began on Wall Street in Manhattan, the effects are among the worst south of the Rio Grande. Although the subsequent recession caused by the financial crisis greatly affected the United States, the results were devastating in Mexico. As a result of the financial crisis, Mexico suffered the steepest decline during its recession. What was a mediocre decade of economic growth turned quite negative at the end. Despite the horrible results of the Mexican economy at the end of the decade, there is great potential for growth in this Latin American country.
First of all, Daniel Chavez Moran notes that proximity to the United States is a big positive. This has led to economic activity that’s generated from NAFTA (North American Free Trade Agreement). As a result of NAFTA, Mexico is the United States’ largest trading partner behind Canada and China. Having a large market so readily available and close makes it a lot easier for the Mexican economy to rebound in the future.
Another reason why Mexico is expected to rebound nicely is the ease of doing business. A lot of people claim that it is difficult to get anything done in Mexico due to the government bureaucracy. However, this is not really true with respect to business when comparing to the other Latin American countries. In fact, the World Bank found that Mexico is the easiest country to do business with. Of course, Mexico can still improve versus the rest of the world. It is still 35th easiest country to do business. However, that also means Mexico is ahead of countries like Spain and Italy, who many businesses don’t have any reservations about doing business with despite their bureaucracy. But right now, Daniel Chavez Moran believes that Mexico is the best choice for reaching Spanish speaking consumers.
The future of Mexico and its ability to rebound nicely from its deep recession is quite good according to Daniel Chavez Moran. All of these factors means there is a good chance that the rebound will be faster than in many other countries including the United States.
