Since the worldwide recession began to bite away at the European economy we have seen a steady stream of expats looking to move to South America. Countries such as Mexico have been magnets for European expats looking to escape from the economic downturn and looking to start a new life in a country which is very prosperous and certainly on the up.
Mexico has for some time had a reputation with regards to crime, drug cartels and corruption although the Mexico we see before us today is very different.
Why are expats moving to Mexico?
Mexico is expected to become the 10th largest economy in the world by the end of 2013 with growth expected in the region of 3.3%. While this is a reduction from the 4% growth seen in 2012 it is still something which their European counterparts would be very envious of. As a consequence, with Mexican unemployment on the way down, there are many reasons to look at Mexico from a financial viewpoint.
Will the past reputation of Mexico rear its head again?
There is no doubt that the Mexico we see today still suffers from the stigma of years gone by when drug cartels ran cities and towns, crime was rife and indeed there were regular claims of corruption within political and government circles. Historically Mexico has always been very popular with US expats but many European expats were put off by the stigma of years gone by which has taken a long time to shake.
The government has made great strides in its fight against drug cartels, corruption is being tackled within government circles and crime statistics certainly back up the government’s insistence that Mexico today is safer than it has been for many years. There is still much work to be done, certain areas of the country are still susceptible to crime and it would be incorrect to say the situation is perfect. However, to say that no progress has been made would be a very damaging critique of the Mexican government and highly unfair.
Looking to the future
The year 2012, despite the ongoing worldwide economic downturn, saw a record investment from overseas companies such as those from the US and Europe. This is likely to continue in the short to medium term as overseas investors look for so-called “safe havens” where their funds will be relatively safe compared to the likes of Europe and North America. When you also take into account the increase in the standard of living across Mexico, a growing disposable income and unemployment which will be under 5% by the end of 2013, what is not to like about the country?
There are still certain areas of the international trading arena which the Mexican government has yet to penetrate, there are still many markets at which Mexico is lighter than it should be but the fact is that in general the economy is stronger today than it has been for many years and the future, despite the worldwide economic downturn, is still very upbeat.
Conclusion
Like so many countries in South America/Latin America, Mexico has suffered from a terrible reputation in years gone by. Crime gangs have ruled the roost in some cities and towns, drug cartels have tentacles which reach into local and national government and corruption has allegedly been rife across a whole array of different areas of authority. The ever growing influx of expats is changing the stigma attached to Mexico as the “real picture” continues to emerge. It will be interesting to see what position the economy reaches in the worldwide league table after the worldwide economy recovers and indeed whether 10th position is just a stepping stone to higher echelons of the worldwide economy.
