In 2010, many thought the Mexican economy had been settled. The Brazilian economy, more than double the size of Mexico’s, grew at a 7.5% annual rate while Mexico puttered forward at close to 2%. What a difference two years makes. While the Brazilian economy shambled along at an annualized rate of 1.0%, the Mexican economy grew almost 4% in 2012. If this trend continues, some reckon the Mexican economy will overtake Brazil’s as soon as 2022 (according to The Economist).
But wait. We know the magazine fallacies all to well. Now, let’s go back to 2010 and show what happened when The Economist wrote about Brazil.
And here is what happened to the Brazilian economy after this magazine issue:
So now, based on their latest cover (below, Nov 2012), economic weakness might be on the way. Beware, Mexico.
Perhaps the Mexican slowdown is already happening… a mere 3 months after the magazine cover.
Source: Diverging Markets