Mexico surpasses Brazil as an investment opportunity

Mexico has become the new hotspot for investors seeking opportunities in Latin America. The new president of Mexico, Enrique Peña Nieto, has been pushing for economic change, which has encouraged many investors put cash in to Mexico.

A recent CNBC article quoted a research director at Frontier Strategy Group as saying, "Brazil became a lot less attractive in the last year and a half. Mexico has definitely come up as a priority."

Mexican companies have proven themselves to have a better profit profile than those within Brazil, with higher profitability and better margins. Brazil has the largest economy within Latin America, but it has been fighting against high inflation, leaving investors worried that over a potentially low-growth environment. Compared to Mexico's quickly growing economy, Brazil's grew only 1 percent last year.

In the past year, iShares MSCI Mexico Capped exchange-traded fund grew over 17 percent. This is compared to a fund trailing Brazil, iShares MSCI Brazil Capped Index Fund, which depleted by over 15 percent.

Key fiscal, financial and energy reforms are expected in Mexico this year, and this comprehensive reform process will only deliver higher growth capacity for Mexico. Experts predict its economy will expand approximately 4.5 percent this year.

Source: Mexico Today