According to the World Economic Forum (WEF) Global Competitiveness Report 2012-2013, in terms of the Macroeconomic Stability Subindex (which is computed considering six variables: government budget balance, national savings rate, inflation, government debt and credit rating), Mexico is ranked in place 40 out of 144 countries.
In terms of government indebtedness, Mexico's government debt as percentage of GDP is 43.8%, indicating a significant better solvency than countries such as Brazil, India, Germany and the United States.
On the other hand, the monetary policy has allowed inflation to reach levels close to those of our major trading partners. In 2012, consumer inflation stood a 4.0%, according to the International Monetary Found.
Also, our country risk level, which is at a 2.3% rate, is more competitive than that of Brazil, India and Turkey, that is, 2.6%, 3.0% and 3.6% respectively.
Favorable exchange performance
IIn the years to come, Mexico will enjoy a better exchange rate performance in real terms compared to its competitor countries on the world markets, particularly Brazil, Russia, India and China (“BRIC” countries). As an example, next figure presents the future behavior of the exchange rate of Mexico and the BRIC countries against the US dollar, the euro, and the Japanese yen.
Mexico’s expected exchange rate will make products exported from Mexico to markets in the U.S., Europe and Japan relatively cheaper, when compared to those exported from the BRIC economies.
Exchange rate performance opens up new business opportunities in the short and medium terms for firms that seek to increase their profitability and better position their products on the world markets, by considering Mexico as an option for setting up an operational and export base.