Mexico could pass Brazil as top Latin America economy in 10 years
MEXICO CITY (REUTERS) - Mexico could overtake Brazil as Latin America's number-one economy in 10 years, according to research by economists at Nomura.
Mexico could become a 'jaguar' economy, similar to the fast-growing 'tiger' economies of East Asia, if its newly-elected government succeeds in kick-starting lackluster growth with ambitious economic reforms, Nomura said.
Optimism about the chance of change in Mexico contrasted with reform fatigue in Brazil, where the government has wheeled out successive measures to boost local industry and protect exporters from a strong exchange rate.
The International Monetary Fund estimates Brazil has an economy twice the size of Mexico's at US$2.4 trillion (S$3 trillion), but Nomura said the gap could disappear by 2022 if Mexico grows at the top end of the bank's forecast range and Brazil at the low end.