Mexico’s economy has taken important steps toward recovery after the December 1994 Mexican Peso devaluation. Inflation is well under control, and in 2007, Mexico registered a historically low rate of 3.4%. World markets have witnessed a stable position in the rate of exchange between the Mexican Peso and the American Dollar, reducing the risk factor that used to be associated with Mexican investment.
A key factor in Mexico’s stable economy is the North American Free Trade Agreement (NAFTA). NAFTA is highly involved in the recovery of the Mexican economy. Over 80% of Mexico’s foreign investments originate in the U.S. Currently, Mexico is America’s second primary partner, ahead of Japan and only behind Canada, who is the third partner in NAFTA. The Mexican economy is ready for the growing influx of U.S. real estate investment.
Based on these factors, U.S. investors and potential buyers alike can rest assured that their investment in Mexico will retain value and likely see a strong appreciation over time.