Prior to the ongoing global financial crisis, recent corruption schemes, and changes in monetary policy, Brazil was an attractive destination for foreign direct investments. However, in recent years Mexico’s rising GDP, stocks, inflation, as well as changes in fiscal policy have caused a recent exodus of foreign direct investments from Brazil to Mexico. Currently, firms, such as JPMorgan, Nomura Group, and Brazilian Itau, have began to encourage its clients to invest their capital in this country. This piece analyses why investors are preferring Mexico over Brazil, and suggests that it is an example for other countries in the region currently struggling to foster economic growth and development.
This report was prepared by Jorge Rojas-Ruiz, Research Associate at the Council on Hemispheric Affairs.
Read full article: Mexico Ousts Brazil as Investors’ Top Choice in Latin America.