Reforms threaten Mexico's investment prospects

LATIN AMERICA

Mexico has always been the country of choice for investors in the LatAm region, but the new government's planned reforms could change this. Daniel Isidori, manager of the Threadneedle Latin America fund explains .

In Mexico, a charismatic new president, Enrique Peña Nieto, took office in December, pledging to double the pace of economic growth to around 5%-6% per annum by overhauling Mexico’s labour market, the telecoms and energy sectors, and the fiscal base. Peña Nieto has set a blistering pace, already signing a number of reforms into law. Mexico should benefit from the recovery underway in the US, which accounts for around 80% of the country’s exports. The wage gap between China and Mexico has also been closing and Mexican goods are increasingly competitive in the US. Over the longer term, ...