Our forecasts are positive for the Mexico economy after the presidential election of Andrés Manuel López Obrador (AMLO) and as the USMCA or NAFTA 2.0 has finally been signed. It is however, yet to to be approved by each country's legislation and will not be implemented until 2019. This gives some relief to the economy after months of uncertainty on the outcome of trade negotiations with US and Canada. Over the longer term, however, we expect the economic impact on consumers, and effects on supply chains, will be relatively minimal, comparable to the status quo of a continuation of NAFTA. Rising real wages have lifted domestic demand and been a key driver of growth in recent months. However, inflationary pressures are rising and the Banco de Mexico, central bank of Mexico, has raised interest rates in order to protect the currency, as a weaker peso places upward pressure on prices.

Key View

SWOT

Industry Forecast

Macroeconomic Forecasts

Market Overview

Competitive Landscape

Mexico Demographic Outlook

Real Estate Methodology