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Mexico: an economic basket case set to turn around

© Getty Images Is Mexico a bargain or a basket case? Latin America’s second-biggest economy shrank by 8.5% last year and has suffered one of the world’s worst Covid-19 death tolls. Yet now it stands to gain from two key trends, Mathieu Savary of BCA Research told Barron’s. Firstly, Joe Biden’s stimulus-fuelled boom is excellent news for the country’s manufacturing and tourism sectors: more than three-quarters of Mexican exports go to its northern neighbour. Secondly, a renewed focus on simplifying and “reshoring” global supply chains away from China could mean that corporate investment that once went to Asia is now directed towards Mexico. Local assets are now set to eclipse their emerging-market peers. 

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