Mexico (MXN, Peso) Economic & Currency Analysis

Mexico (MXN, Peso) Currency FX Analysis

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Short Term Rating Currency Ratings Help
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Long Term Rating Economic Ratings Help

HOLD

Mexico SWOT Statistics

Strengths + Opportunities = 21

Threats + Weaknesses = 12

When strengths & opportunities substantially exceed threats & weaknesses an investment in the Peso has great long term potential.

Mexico is a federal constitutional republic in North America and has a capitalist economy. The estimated population is over 110,000. Mexico’s economy is the 13th as far as Gross Domestic Product (GDP) terms and 11th in Purchasing Power Parity (PPP). Mexico’s economy has been helped by the North American Free Trade Agreement (NAFTA), increasing its trade with US and Canada by three times from before NAFTA. Most of Mexico’s agriculture still has production techniques that are very out dated. US agriculture is around 20% greater than Mexico. Over 25% of Mexico’s population lives in rural areas but agriculture is only a small percentage of the GDP. Mexico’s GDP is about the same as some other countries such as Spain, South Korea and Canada. But has about 5 times the number of people. It’s GDP growth is slower that the world average but faster than the countries it is trading partners with such as the US and Canada.


Peso Currency Analysis Update

Mexico (MXN) has a capitalist economy with a fast growing service and industrial base. Mexico's Fundamental Currency Analysis (short term investment): the Mexican currency has moderate potential to increase in value per the purchase price parity and interest rate parity analysis. Mexico's Value Investor Survey (short term investment): the economic environment is moderate for long term economic growth. SWOT weaknesses are significantly greater than SWOT strengths, whereas, opportunities are greater than threats. Mexico's Currency Trading Strategy: An undervalued currency, low investment flow potential and unfavorable business environment lead to neutral or negative outlook for Mexican investments.


Factors That Positively Affect The Peso


Factors That Negatively Affect The Peso