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- July 1, 2013: Vol. 25, Number 7

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Mexico drifts into an economic slumber

by Mike Consol

 

The Mexican economy had become so resurgent — with a growth rate that was outstripping Brazil — some observers took to calling it the Aztec Tiger. Unfortunately, Latin America’s second-biggest economy now seems to be losing its roar.

Its first-quarter growth rate weighed in at an anemic 0.8 percent, its worst showing since 2009. That prompted government officials to scale back their 2013 economic growth estimate from 3.5 percent to 3.1 percent, well below the 5 percent to 6 percent some had been hoping for. Meanwhile, the Mexican Stock Exchange hit an eight-month low in May. Add to that an admission from Tourism Secretary Claudia Ruiz Massieu that Mexico might drop out of the top 10 international destinations for the first time in years.

Despite all that, the economic downturn has not taken a toll on real estate prices, according to Lyman Daniels, president of CBRE Mexico.

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