A recent NYT article discussed the pros and cons of the economies of Brazil and Mexico and hinted that the latter is set to surge past Brazil in its growth rate in the years ahead. Here is the author’s comments:
“Brazil’s slowdown can be attributed partly to debt-burdened consumers and the erosion of industrial production, which is tied to the recent strength of Brazil’s currency, the real. On top of that, slowing global growth, particularly in China, has pushed down prices of the commodities that Brazil exports.
Meanwhile, Mexican factories are exporting record quantities of televisions, cars, computers and appliances, replacing some Chinese imports in the United States and fueling a modest expansion.”
But according to the chart below that shows GDP growth for both countries, it seems like Mexico has a long way to go to make up lost ground.
Though one thing we can all agree on: the two countries face many of the same problems like inadequate schools, creaky infrastructure, bureaucracy and corruption.