Mexico’s authorities recently revealed that GDP grew 2.5% in 2015. In a year full of economic and financial turmoil mainly influenced by China’s decreased growth and considerable drop in oil and commodity prices, the fact that Mexico managed to grow at this pace indicates the country holds solid macroeconomic fundamentals especially when compared to similar emerging markets economies such as other Latin American peers. Also, with Brazil in deep economic trouble, Mexico should see its position among emerging countries rise in Latin America which should reflect in an increase in foreign and local investments due a to a solid economy, political stability and positive middle to long term growth prospects.
The consumer market in Mexico has responded well to the actual economic challenging environment by remaining budget cautions. There is a positive outlook for the Mexican consumer, despite a modest deceleration in consumer spending in early 2016 as rising inflation affects consumer spending. Strong labor market dynamics, favorable demographics and low price pressures support this strong outlook. In particular, consumer spending growth will boot the emergence of an upper-middle class, creating robust premiumization opportunities.