Mexico’s new administration is vigorously moving forward fundamental reforms to Mexico’s tax, labor, education and possibly energy sector and these reforms will certainly provide us with positive material to keep you inform of Mexico’s impressive economic performance.

Despite that the main economies around the world have slowed down its economic growth, Mexico has steadily growing, maintaining a low unemployment rate as well as keeping trade with its main partners.

The Globe and Mail

“High unemployment, slow growth and crippling debt are common themes in many industrialized countries around the world, but not in Mexico. The unemployment rate in Latin America’s second largest economy has fallen to its lowest level in more than four years, at 4.5 percent. Economic growth is outperforming most other countries and the stock market is hitting records high. A solid jobs market and stable economy is bolstering the country’s middle class. But it could also carry benefits to Canada too. Mexico is Canada’s fifth largest destination for exports and many Canadians firms are setting their sights on Mexico, betting prospects will keep improving.
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Trade between Canada and Mexico grew 8 percent between 2002 and 2011 (at compound annual growth rates), and EDC expects growth to continue. Mexico’s large population, at 112 million and upbeat economic prospects ‘will have positive effects on their demand for Canadian products as well as open business opportunities for Canadian companies looking at doing business in that market’ the agency said. The country’s economy is expected to expand 3.5 percent this year – a little less than last year but still stronger than projected rates for Canada, the United States and much of Latin America.

‘While much of the world’s economies, such as China and Brazil, slid in a slowdown last summer, Mexico was a rare and notable exception, generating remarkably smooth growth,’ said Mr. Peter Hall, chief economist at Export Development Bank in a note.”

By: Tavia Grant – The Globe and Mail
Click here to read full article

Another thing that should be pointed out is the great number of Free Trade Agreements that Mexico has currently in place, which are 12 with 44 countries, and advantage that allows companies therein to have access to more markets than any other country.

The New York Times

“Mexico has signed 44 (sic) free trade agreements – more than any country in the world – which according to the Financial Times is more than twice as China and four times more than Brazil. Mexico has also greatly increased the number of engineers and skilled laborers graduating from its schools. Put all that together with a massive natural gas finds and rising wage and transportation costs in China, and it is not surprise that Mexico now is taking manufacturing market share back from Asia and attracting more global investment than ever in autos, aerospace and household goods.
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’Today, Mexico exports more manufactured products than the rest of Latin America put together.’ The Financial Times reported on Sept. 19, 2012. Chrysler, for example, is using Mexico as base to supply some of its Fiat 500s to the Chinese market.

…Better integration of Mexico’s manufacturing and innovation prowess into America is a win-win situation, because it makes U.S. [and Canadian too, sic] companies more profitable and competitive, so they can expand at home and abroad.”
By: Thomas L. Friedman – The New York Times
Click here to read full article

Consequently, investors have in the last months decided to put their money in Mexico in larger quantities than in other countries of the region.

The Financial Times

“Foreign investors have poured money in. During the first nine months of 2012, they funneled $57bn into Mexican stock and bonds, more than five times the amount they invested in Brazil during the same period.”

By: Adam Thompson- The Financial Times
Click here to read full article

Mexico seems to be back on track, regaining its 1st place as an the best option for those companies interested in both, expanding their markets as well as setting up additional manufacturing capabilities.

At Solorzano Corporation we continue to be attentive to bring you current and relevant information on the markets we follow closely, Mexico and Colombia. We also continue to be committed to assisting you with all your needs in those two markets.

Grupo Aeromexico was the domestic market leader with a 37 percent share, followed by Interjet – 24.2 percent, Volaris – 20 percent, and VivaAerobus – 13.4 percent.

In the international market, Aeromexico leads Mexican carriers with an 18 percent market share, followed by Volaris at 5.4 percent. Systemwide traffic increased grew 8 percent.

Boarding passengers keep growing in Mexico. The National Air Transport Chamber (CANAERO,) an independent think tank set up by different players in the air transport industry, estimates Mexico is on track to break all records this year for the number of boarding passengers.

The organization foresees more than 55 million boarding passengers in Mexico this year, up at least 3 percent compared to the previous breaking record year of 2008. Of this total, 51 percent is estimated to correspond to the domestic market and 49 percent to the international market.

In the first half, domestic traffic grew 11.2 percent, while the international traffic increased 7.3 percent. CANAERO said the increases in flight frequencies and fleet expansions are the main causes of industry growth in the country.

But just as momentum can change suddenly in a match at the World Cup or an event at the Olympics — both competitions that Brazil will host in the next four years — so can the dynamics between nations.

Last year, Mexico’s economy grew faster than Brazil’s, and it looks set to outpace its larger Latin rival again in 2012.

Brazil’s slowdown can be attributed partly to debt-burdened consumers and the erosion of industrial production, which is tied to the recent strength of Brazil’s currency, the real. On top of that, slowing global growth, particularly in China, has pushed down prices of the commodities that Brazil exports.

Meanwhile, Mexican factories are exporting record quantities of televisions, cars, computers and appliances, replacing some Chinese imports in the United States and fueling a modest expansion.

Economically, Mexico does not appear as grim a place anymore.

“The best way to improve your image is G.D.P. growth,” said Luis de la Calle, a former Mexican trade negotiator and an economic analyst here.

Mexico’s strengthening economy underlies the glossy veneer on display as President Felipe Calderón hosts the Group of 20 leaders of major industrialized and emerging economies at the luxury beach resort of Los Cabos on Monday and Tuesday.

In contrast to the widening crisis in the euro zone, which will be the focus of the talks, Mexico will be able to point to 17 years of macroeconomic stability, low inflation, manageable debt, an open economy and increasing competitiveness. The gross domestic product expanded 3.9 percent last year, ahead of Brazil’s growth of 2.7 percent.

And there are encouraging signs for the years ahead. Nissan, Mazda and Honda all announced that they would build new plants in Mexico, and new investments in aerospace and electronics are also on the horizon.

“Stars appear to be increasingly aligned for an economic outperformance” by Mexico, a report in May from Nomura Securities concluded. “A changing of the guard is slowly but surely taking place.”

The reversed fortunes of Latin America’s two largest economies are a sharp contrast to the euphoria over Brazil’s prospects as recently as 2010, when the economy grew 7.5 percent in the last year of President Luiz Inácio Lula da Silva’s government.

“The years of good growth are clearly in the past,” said Antony Mueller, a professor of economics at the Federal University of Sergipe in Brazil.

In one sign of unease, the Brazilian government threatened this year to cancel a 10-year-old automotive trade accord with Mexico. For most of the pact’s life, Brazil had sent more cars to Mexico, but last year that reversed, with imports of Mexican-made cars surging 70 percent to $2.4 billion. In March, Mexico agreed to cut its exports to Brazil to an average of $1.55 billion annually for the next three years and restore free trade after that.

The dispute highlights each country’s distinct approach to development. Mexico has been dedicated to open markets, free trade and deregulation. Brazil’s model involves muscular government intervention through big state-controlled companies.

At the same time, China’s rise has affected Brazil and Mexico in opposite ways: China competes with Mexico and buys from Brazil. Mexico struggled for much of the past decade as Chinese-made products replaced Mexican goods in the United States, which buys 78 percent of Mexico’s exports. And China’s demand for raw materials helped lift Brazil’s economy as stability allowed the government to redistribute the wealth and expand credit.

“Brazil has had two powerful narratives,” said Gray Newman, an economist for Latin America at Morgan Stanley. “If you believe in China, you believe in Brazil. That counted for a lot. The second narrative is that ‘We’ve become a normal country and created the conditions for the emergence of a middle class.’ Those narratives are so powerful.”

Mexico’s story has not been as positive, Mr. Newman said, with its fortunes tied to the United States and the government engaged in a war against powerful drug gangs. Even with the tide turning in their favor, Mexicans are so gloomy they do not see it, analysts say.

“This self-flagellation in Mexico is a malady,” said Mr. de la Calle, who argues against the conventional wisdom and describes Mexico as a middle-class country. “When I said, ‘You are not as badly off as you say you are — there is a reason to have hope for the future,’ the argument that I got back was that Brazil is doing much better.”

Indeed, the candidate who leads in opinion polls ahead of Mexico’s July 1 presidential election, Enrique Peña Nieto, began a recent presidential debate by asking people if they were better off and answering the question himself: “Surely, no.”

One reason for the malaise is Mexico’s drug war. The sight of miles upon miles of factories outside the industrial capital of Monterrey attracts far less attention than the image of nine bodies hanging from a bridge in the border city of Nuevo Laredo. Mexico’s Finance Ministry has estimated that the violence shaves at least 1 percentage point from G.D.P. growth.

Even though Brazil’s homicide rate trumps Mexico’s, the gory nature of the killings in Mexico and Mr. Calderón’s use of the military to combat traffickers have focused more attention on the death toll here.

And Mr. Peña Nieto is correct that growth has yet to trickle down to many workers. Real wages have barely increased. Indeed, one reason that Mexico has captured market share from China is the narrowing gap between Chinese and Mexican wages.

Brazil and Mexico probably have more in common than their supposed rivalry would suggest. Each has stabilized its economy after decades of veering from crisis to crisis and improved the well-being of many of its citizens.

In Brazil, “the dividends of what it did in the 1990s paid off with a political transition dovetailing with commodity prices,” said Lisa M. Schineller, a Latin America analyst for Standard & Poor’s. “It all came together.”

Now the two countries also face many of the same problems: inadequate schools, creaky infrastructure, bureaucracy and corruption.

Mexico’s political paralysis has stopped it from taking effective measures to break up monopolies, rewrite labor laws, collect more taxes and pry open the world’s most closed oil company, changes that would add 2.5 percentage points to its growth rate, the Mexican Institute for Competitiveness estimated.

The question is how these middle-income countries find a way to advance further, said Shannon K. O’Neil, a Latin American analyst at the Council on Foreign Relations. “Trying to move from G.D.P. per capita of $5,000 to $10,000 is much easier than moving from $10,000 to $20,000,” she said. “I think that’s the challenge that both face.”

Elisabeth Malkin reported from Mexico City, and Simon Romero from Rio de Janeiro.

The blue agave cactus fields near the town in the state of Jalisco are a UNESCO World Heritage site, and Mexican law states that tequila can only be produced within these limited regions. The country has also claimed exclusive international right to the word “tequila,” threatening legal actions against manufacturers of distilled blue agave spirits in other countries.

This makes the blue agave plant very precious and tequila even more so, yet agave fields in Mexico are rapidly diminishing due to pollution, increases in acreage needed to grow biofuels, lack of water, and other factors.

Some tequila manufacturers are beginning to take note of the importance of sustainability factors in tequila manufacturing. One such company is Casa Herradura. They have been working on making several aspects of their production as eco-friendly as possible.

In 2007, the company built a multi-million dollar wastewater treatment plant to treat 100% of the water utilized in the production process. The production of tequila is very water intensive – for every gallon of tequila there are 18 gallons of liquid waste. This waste is so acidic that when it is released without treatment it makes the soil unfit for farming.

In 2010, the company installed a second treatment plant which is used to treat the water from the cafeterias, restrooms, bathrooms. The filtered, treated water is reused for irrigation of the agave plants and lawns thereby reducing overall water use.

A waste-to-energy process was installed that fuels a steam boiler with biogas generated by a biological anaerobic reactor, as part of the wastewater treatment plant. This system provides 12% of the energy utilized in the tequila production process.

They have also converted 81,000 tons of agave bagasse into more than 27,000 tons of compost that is used in agave fields and nurseries since 2008.

Casa Herradura has a comprehensive recycling program that ensure that all materials are separated and recycled. This program includes hazardous wastes, generated during the agriculture process. The company has also implemented a “Green Field” program that handles and disposes non-hazardous waste produced during the agave harvesting.

The 140 year old company had recently revamped the look of its bottles and packaging. From the sound of things, they are also doing the same to their sustainability efforts.

Source: TriplePundit.com

Southwest has agreed to pay for the construction of five new gates and a customs facility to accommodate international flights out of Hobby Airport.

Mayor Annise Parker and Southwest CEO Gary Kelly announced the agreement in a celebratory media event at Hobby, surrounded by cheering airline employees. Just as importantly, the mayor was joined at the podium by seven council members, indicating she will need only one more vote to pass the deal through city council.

“Southwest Airlines has agreed to pay for all of the expenses associated with this expansion,” Parker said to boisterous applause. “That’s it.”?

United, which dominates local air travel from its hub at Bush Intercontinental Airport, has waged a high-profile fight to kill Southwest’s international ambitions at Hobby. Both airlines have hired brigades of lobbyists, publicists and political consultants to influence the council members who must approve the proposal. But the number of elected officials joining Southwest’s CEO at the podium indicates United now has little chance of winning this political battle.??

“Competition is good,” Kelly said. “Houston has suffered from monopoly airfares to Mexico, Central America, the Caribbean and South America long enough. So we will bring lower fares. We will bring more competition.”

The deal scuttles a $1.50 per ticket passenger fee that was part of the earlier proposal. Instead, Southwest will collect up to $3.9-million a year of Hobby’s concession revenues under a complicated formula based upon the growing number of passengers flying through the airport in future years.

Southwest will have rent-free first access to four of the five new international gates if the deal is approved by city council. The fifth gate would be available for other airlines, but they would have to pay rent.

“The airline will design and build these gates to the city’s specifications,” Parker said, adding that the airline will also use the city’s policies on giving preferential treatment to local and minority contractors. That’s an especially important concession for some minority council members, who have pointedly questioned airline executives about their hiring and contracting practices.

Southwest intends to book about 20 more flights a day. But federal regulators must still approve any new international routes for the airline. City officials say under the agreement, Southwest is still committed to building the new facility even if the FAA rejects the new routes.

The deal will go before city council next week, but under the council’s parliamentary rules the vote will probably be delayed for another week. Construction is planned to begin next spring.

According to the survey, those born in the mid-to-late 1940s left their jobs at an average age of 60 for men and 57 for women. Over a quarter retired between ages 56 and 61, and 20 percent retired at age 62. Just over a third say the main reason they retired was because they reached retirement age and wanted to be free. But about half of retired boomers report they retired earlier than they originally planned.

Baby boomers currently working expect to retire at an average age of 69, and over a third hope to retire in 2012 at age 66. Working baby boomers say they are planning to delay retirement for a variety of reasons, they need to continue receiving a salary to pay for day-to-day expenses, they enjoy working, or they want to stay active. Even if people retire and move to Puerto Vallarta, many pick-up some part-time work.

Ron Sitarski, a real estate agent with Ron Morgan Properties, says he works because it keeps him in tune with his environment and keeps him active. “At the age of 50, I started receiving mail from the Social Security office telling how much I was going to receive per month once I retired,” says Ron. “I found out that at age 62 I would hit the maximum and after that, the amount would always be the same no matter how many more years I worked.”

Ron spent 18 years in the Florida real estate market and it was not what it used to be during the late 90s. When Ron discovered he was maxed out on how much social security he would be receiving, he decided to retire at 62. “The real estate market was going to hell,” exclaims Ron. “I already had a place in Puerto Vallarta, so I and my significant other, Liz, decided to move to paradise.”

The cost of living in Puerto Vallarta is a lot lower than a major metropolitan area in the US. Ron says the real estate taxes are minuscule compared to Fort Lauderdale and the car insurance costs about 50 percent less. Your dollar goes a lot farther here.

However, it did not take Ron long to get kind of bored so he started looking for a job and ended up at Ron Morgan Properties. “I bring a great deal of experience and enthusiasm to the office,” says Ron. “Selling real estate in Mexico is vastly different than selling in the United States but I still enjoy it and learning the complexities of Mexican real estate.” Ron goes on to say that he now makes a little extra money and it makes him happy.

My, how the world has changed for so many baby boomers looking to retire to a comfortable lifestyle envisioned for so long. The economic abyss that has consumed such a large part of many folks’ nest eggs has forced us to re-evaluate our retirement plans.

We have started to re-analyze the cost of maintaining the lifestyle we had planned. What will it cost for health care, food, transportation, entertainment, travel and such? We are also reviewing the costs of home ownership – maintenance, mortgage, insurance, utilities and property taxes.

For many, after examining the numbers, buying a dream home in Mexico appeared as more of a mirage than clear vision. The numbers simply wouldn’t work.

Enter the New Math for Retirement.

For some, a revelation takes place after this financial “check up.” What about considering La Paz for the primary residence? If your dream was to live in “paradise” for 3 or 4 months… why not make La Paz your primary residence?

How much could your sell your current home for? What could you buy as a replacement in La Paz? Here, you can purchase a home or water view condos starting around $150,000 USD. By selling there and buying here you are applying the New Math and your depleted nest egg will begin to grow again. Throw in a mortgage, and your window opens wider.

Now, compare home ownership costs. Start with one element – property taxes. My friend, who owns a half million-dollar-La Paz-home, recently paid his 2012 property taxes – $325 USD. He sold his US home for $600,000. His annual property tax bill for that home was $6,500. The $500 per month saving works well for him in maintaining a comfortable retirement lifestyle.

Now compare other cost of living expenses. How about health care? Did you know that you can purchase an individual Mexican health insurance policy for less than $400 per year… not per month? The quality of health care in La Paz is very good. Recently, my friend, who just moved here and does not have insurance, got the flu and went to a local clinic. 45 minutes, English speaking doctor (cost $40 pesos – a little over $3 USD) and prescriptions filled next door ($97 pesos – $8 USD.) How does this compare to a visit to your doctor back in the US?

How about food – groceries and eating out? If you insist on brand names and top restaurants you will not experience a big savings. However, once you get to know La Paz you will find great local grocery stores and terrific, affordable restaurants. For example, my friend and I love shrimp tacos. So we go to Pepe’s on Prieto. We each have two shrimp tacos and a drink. Total bill – $76 pesos ($6 USD) for both of us.

As much as I disliked the New Math when going to school in the 60′s, I love the New Math as it applies to affordable cost of living in Mexico.

By the way, the rumors are true… summers get a little warm in La Paz. If you do need a break from the summer heat… take a “vacation.” Visit family and friends or travel to some other exotic location… after all, you can afford it… simply by applying the New Math.

Jim Donahoe – Linda Neil Properties

The men’s tournament is comprised of 16 teams and is separated into four groups of four. Each qualified nation will enter a team of 18 national players under 23 years of age. Each team may invite three over-age players to be included in the 18 man roster.

Great Britain, with a men’s team at the Olympics for the first time since 1960, is seeded as hosts and will lead Group A.

Mexico, the top-ranked team among the qualifiers from Asia, Africa, Oceania, and their own CONCACAF region, are top seeded in Group B.

Brazil, the best men’s soccer team in Olympic history despite never winning the gold medal, is the seeded team in Group C.

World champion Spain will be the top seed in Group D.

After Tuesday’s draw, the men’s division shaped up like this:

• Group A: Britain, Senegal, UAE, Uruguay
• Group B: Mexico, S. Korea, Gabon, Switzerland
• Group C: Brazil, Egypt, Belarus, New Zealand
• Group D: Spain, Japan, Honduras, Morocco
Seeds for the 2012 Women’s Olympic Soccer Tournament were also announced on Monday. The women’s tournament is comprised of 12 teams separated into three groups of four. Although the rosters in the women’s tournament also must not exceed 18 national players, there are no age restrictions.

Britain, as the hosts, will be the top seed for group E; Japan, reigning world champions, are the seeded team for group F; and Team USA, the highest ranked and reigning Olympic champions, the top seed for group G.

After the draw, here is how the women’s groups shaped up:

• Group E: Britain, New Zealand, Cameroon, Brazil
• Group F: Japan, Canada, Sweden, South Africa
• Group G: USA, France, Colombia, North Korea

The 65 million pesos ($5.1 million USD) that Jalisco and Nayarit invested to host the 2012 event seems to have paid off. With an increase of 24% over last year’s registered companies and participating travel professionals, and 2300 business appointments held, the economic overflow to the 2 states is estimated at $140 million pesos, or $11.2 million USD.

Over the 2 and 1/2 day tourism expo, Puerto Vallarta representatives attended 58 business meetings with national and international airlines and tour operators. As a result, Apple Vacations, Travelocity, Air Canada, Alaska Airlines, Transat, Best Day and Signature, among others, will actively participate in a concentrated publicity campaign designed by the Puerto Vallarta and Mexico Tourism Boards to increase the promotion of this popular beach destination throughout North America.

To extend the region’s reach in new markets, a special agenda was prepared for buyers from Paris, Beijing, Madrid and Brazil. Business meeting and wedding travel providers were also targeted through presentations that brought the city’s world-class services and infrastructure to light. Some of the airlines and travel providers that participated in these programs were Viajes El Corte Inglés, Iberia, Orizonia, and Viajes Barceló.

In addition to the travel and tourism professionals from more than 30 countries who participated in this year’s Mexico tourism expo, (an increase of 30% over last year) Puerto Vallarta’s International Convention Center welcomed more than 1000 visitors, including members of the world-wide press.

Vallarta took full advantage of the world-wide attention by hosting events that showcased all of the amenities that the Banderas Bay region offers. Wining and dining gave visitors ‘A Taste of Nayarit,’ as well as special editions of Vallarta Wine Fest and Restaurant Week; golf tournaments offered the opportunity to play on championship courses; and live entertainment, including concerts, dance performances, and spectacular firework displays, offered a glimpse of Mexico’s rich culture.

The 2011-2012 tourist season had already shown an increase in numbers before the tourism expo was held here. The undeniable success of this year’s Tianguis Turístico is sure to boost the number of people who plan to visit Puerto Vallarta in years to come.

Source: Puerto Vallarta Convention and Visitors Bureau

During this week’s Tianguis Turístico México 2012 tourism fair in Puerto Vallarta, Tourism Secretary Gloria Guevara told listeners that “the interactive atlas will provide a abundance of information on travel destinations at the national level, with maps, photos, and information about the main attractions at each destination.”

Some of the things the online atlas will include will be information on Mexico’s 13,617 hotels, 198,538 restaurants, more than 5,000 travel agencies, 70 airports, 106 bus terminals, 117 museums, 184 archaeological sites, 31 World Heritage Sites, as well as many other support services for the tourist industry.

“The data will serve as a national inventory of all of our tourist assets,” Guevara said.

“Any national or international tourist is going to be able to enter the web site and find the Routes of Mexico, the locations of the 52 Magic Towns (small towns or villages in Mexico with historic or cultural significance), the the Mayan World Route, packages tied to the Mundo Mayo celebrations that are happening later this year, and the Treasures of Mexico Program that has had so much success,” Guevara stated.

Guevara added that the atlas will be live later this month in English and Spanish via a link on VisitMexico.com, and in a second phase, plans to include these sites of interest on Google Maps. The atlas will also be available as a downloadable app for iPhones and iPads.

See the video here: http://www.banderasnews.com/1203/to-touristatlasofmexico.htm