Emerging markets: Three regions on the radar
11 Feb 16
Georgina Hellyer, portfolio manager at Columbia Threadneedle Investments, outlines the three hottest EM areas investors should be looking at right now.
Mexico: Broadening economic recovery
Mexico has experienced an encouraging political reform programme lately. “President Enrique Pena Nieto, who was elected in the summer of 2012, has been pushing through a series of laws to increase flexibility in the labour market and to open up the country to more foreign direct investment, particularly in the energy sector where there are hopes it will unlock some of Mexico’s enormous potential in deepwater oil and shale gas.”
- 80% of Mexican exports are destined for the US market
- Competitive cost of labour and geographic proximity make Mexico an attractive destination for FDI
- Recovery in consumption, helped by remittances from Mexican workers in US
- Structural reforms introduced by Pena Nieto’s government should lift Mexican growth trajectory
Tags: Columbia Threadneedle | India | Mexico
