John Morrissy, Canwest News Service

Published: Tuesday, March 25, 2008 

OTTAWA - The economies of Mexico, Brazil, Russia and even Indonesia will surpass Canada’s in the coming years as emerging nations recreate the world’s financial order, a PricewaterhouseCoopers report said Tuesday.

In the face of such global competition, “Canada’s share of the global economy is projected to diminish,” said Ed Mansfield, the head of PwC’s economics practice in Canada.

“To maintain our competitive position, Canadian businesses will have to differentiate through innovation and technological progress. This will require greater investments in education and capital equipment to promote the productivity gains necessary for economic growth.”

In the meantime, the growth engines of the 20th century will become the Tier 2 players of the 21st as countries such as China overtake their now larger rivals in the Organization for Economic Co-operation and Development (OECD), the report said.

It forecasts: China will surpass the U.S. to become the world’s largest economy in 2025; Brazil will overtake Japan by 2050 to move into fourth place; India’s economy will grow to 90 per cent of the U.S. economy by 2050; and Germany, the powerhouse of Europe’s economy, will also fall before the might of Russia, Mexico and Indonesia.

As for Canada, the report predicted its economy will be surpassed by India in 2014, Brazil in 2016, Russia in 2020, Mexico in 2024 and Indonesia in 2037. It will even be rivalled by Vietnam, whose economy is forecast to grow at 9.8 per cent per year over the next four decades, in 2050.

The report highlighted the fact that strength in emerging economies has now grown beyond the so-called BRIC_countries (Brazil, Russia, India and China) into the “Emerging Seven (E7),” which includes the BRIC countries as well as Indonesia, Mexico and Turkey.

Mansfield said the Canadian manufacturing sector, particularly in low- and medium-skilled industries, will continue to be the victim of low-cost production in developing countries.

To survive that onslaught, Canadian manufacturing must find its future in higher-valued industries, Mansfield said, and continue to build on emerging strengths in areas like biotechnology and new media, which already employs upwards of 60,000 Canadians in fields such as video-game development.

Environmental technologies, companies “on the leading edge of sustainability,” energy and utility companies whose products and equipment will continue to see strong demand, and financial services are all areas of future opportunity, Mansfield said.

Yet “the rapid growth of the emerging economies does not mean the demise of the established OECD_economies. In fact it should prove to be a boost for them through growing income from exports and overseas investment, even as the OECD share of world GDP declines,” said the report’s author, John Hawksworth.

Canada’s resource base will remain strong, and its multicultural makeup - with established social and cultural ties to the developing world - will put it in a unique position to prosper from new opportunities, PwC said.

It said retailers will be likely winners, benefitting from lower-cost imports into OECD_markets, while also having the potential to open new stores in the E7 countries.

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Posted on March 31st, 2008 by Tropicasa
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UPDATE: KPMG Study Ranks Mexico First In Low-Business Costs

   DOW JONES NEWSWIRES

Mexico claimed the title as the most cost-effective of 10 countries studied in which to do business, according to a new report by audit and tax advisory firm KPMG.

The U.S. leapfrogged its European competitors for third place thanks to the declining dollar.

Of the countries in North America, Europe and Asia-Pacific ranked in the report, costs for doing business in Mexico were 20.5% below those in the U.S., which was used as the baseline. Mexico wasn’t studied last year, while Singapore was - it ranked first in the biennial study’s 2006 rankings.

At the low end was Germany, whose costs were 16.8% higher than in the U.S. Canada was second and Australia was fourth, with both countries’ costs nearly equal to the U.S. Rounding out the list was France, the United Kingdom, the Netherlands, Italy and Japan.

The report said the the Mexican cities of Puebla, Guadalajara and Monterrey offered the lowest business costs. These cities rank ahead of a group of Southern U.S. cities -Atlanta, Tampa and Dallas-Fort Worth. At the other end of the spectrum, San Jose and New York continued to represent the most expensive North American cities in which to do business.

The study found that the Netherlands, Italy, Germany and the U.K. had seen the greatest increases in costs relative to the U.S., though the U.K. had benefited somewhat at the expense of continental Europe thanks to the strong appreciation of the euro relative to the pound.

Mark MacDonald, KPMG’s global director for competitive alternatives, said that “within Europe there is strong evidence of intra-regional competitiveness. The opening of labor markets, more competitive tax rates, and investment in infrastructure implies that while Europe has shifted its position relative to the U.S., there is still strong competition among European countries.”

In Europe, the report said, costs in Paris were comparable to those in some large U.S. cities, while London was the most expensive city examined, “by a wide margin.”

Japan remained one of the most expensive countries in which to do business, but it has gained ground against other countries over the longer term due to low inflation rates and lower volatility of the yen.

The study measured 27 significant cost components that are most likely to vary by location - including labor, taxes, real estate and utilities - as they are applied to 17 business operations over a 10-year planning horizon. The study also compared data on a variety of non-cost competitiveness factors. The six-month research program covered 136 cities.

New to the 2008 report is analysis of a wide variety of non-cost factors that influence the attractiveness of business and site locations. Site selection factors compared in the report include macroeconomic indicators, labor markets and business and environmental regulation.

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Posted on March 31st, 2008 by Tropicasa
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February 20, 2008
BY ASSOCIATED PRESS
MEXICO CITY — Mexico’s economy grew 3.3 percent in 2007, slightly faster than the government had projected, as foreign investment soared amid a cooling in the United States, the Treasury Department said Tuesday.

Gross domestic product, the broadest measure of goods and services produced, was boosted by brisk 4.4 percent gains in the service sector, which helped compensate for slowing 2 percent growth in agriculture and 1.4 percent growth in industry, the department said.

Mexico announced that foreign direct investment rose 21 percent in 2007 to $23.2 billion, the second-largest amount in its history.

Half of the total invested went to manufacturing, signaling a supply of ”well-paid jobs, and that there is trust in the administration of President Felipe Calderon,” Economy Secretary Eduardo Sojo told reporters.

Nearly half of investments came from the United States, while Holland followed with 15 percent and Spain with 10 percent, Sojo said.

Posted on February 20th, 2008 by Tropicasa
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By: Doug Jones

I trust you all had a happy Mexico Constitution Day yesterday!  Mortgages In Mexico has been very busy.  As anticipated, this is definitely the year of the Canadian!!  We have had approximately 50% of our new loans since the first of the year with Canadians.  We now have two (2) excellent sources of Canadian money available.  These programs vary in length from 20 to 25 years.  Interest rates vary from 7.5% to 9%, and the down payment requirement is from 25-35% down.  We also have money for those difficult to qualify “self-employed” Canadian and US buyers.  We are able to qualify these buyers with 6 months of bank statements instead of using the (usually) limited income shown on their tax returns.  We are still going strong with US buyers as well.

The question on everyone’s minds is will interest rates in Mexico come down as a result of the recent Federal Reserve drops in the US?  The answer is no.  The Federal Reserve changes are designed to affect short-term rates, and in fact the LIBOR index (used to determine what a new adjustable rate payment will be) has come down over 1%.  This is good news for people who have adjustable rate loans.  Unless and until short-term interest rates remain low for a long period of time, there will not be a drop in interest rates for Mexico loans.  The risk factor for Mexico loans has already been calculated into our existing rates, and in spite of the ups and downs in the US markets over the last year and a half, we haven’t seen any changes in our Mexico rates - it is somewhat, but not totally insulated from the US markets.

Mortgages In Mexico is anticipating the return of GMAC back into the market sometime this month.  They have been purchased by a Wall Street brokerage company who has been eager to get into the Mexico mortgage market.  We anticipate being able to loan in excess of $1 million loan amounts, and a stated income program.  This fits very well with the financially sophisticated client who prefers not to divulge every detail of his/her financial life.  GMAC will be known under a different name when they come back into the market.

We are also anticipating new and improved guidelines from GE.  GE recently lowered their maximum loan amount to $1 million.  We believe we will once again be able to loan in excess of $1 million with GE as well.  We will be getting specific guidelines probably by the end of February and will keep you posted on the changes.  We know there are new procedures which will prevent delays that were caused by “multi-level” approval processes.  This meant we had to get a loan approved by several different levels of management, which added time and requirements.  Our primary underwriter will have authority to approve loans up to $1 million.  This will be a HUGE time savings.  Previously the underwriter could only approve loans up to $300,000 before it had to get further approvals from upper management.

We continue to see more and more, larger loans.  Since the first of the year, we’ve taken several loans in the $600-800,000 range, one for $900,000 and 2 loans of $1 million or more.  In addition to GE and GMAC coming back into the market with loans of more than $1 Million, we currently have a lender doing these larger loans.  These loans can also be made to previous customers of yours who want to take some cash equity out of their homes in Mexico that you sold them.  We call this a “cash-out” refinance.  Existing homeowners/investors see what is going on with increasing prices in Mexico, and they want to invest in other properties in Mexico.  The US market is a good 2 years away from starting to go back up, and these savvy investors want to park their money in good investments.  Mexico real estate is an excellent choice.  Now may not be a good time for investors to pull equity out of their real estate in the US because the values of their homes (and available equity) continue to go down.  It may be easier to refinance a Mexico home right now than it is in the US!

Give us a call or send us an email.  We’ll be happy to discuss any of our loan options with you.  We are working with ALL the available lending sources in Mexico and have excellent relationships with all of them.  Although it may be possible to sometimes go to the lender directly rather than using a broker like Mortgages In Mexico, it is still beneficial to go through us rather than direct.  Why?  Because since we have the documents with our in-house processing staff, we can send the documents to different lending sources without having to start all over again.  When you go directly to a lender, if they turn down or modify the loan, your buyer will have to once again provide the documents for the new lender because the previous lender doesn’t return the documents to be sent elsewhere.  In fact, we have several of our lenders who are recommending Mortgages In Mexico as the “go-to” broker because of our expertise and follow up on our loans.  The lenders benefit by this because they need fewer employees to process the loan (many are already getting slower in their processing because of increasing loan production).  These lenders want to get the loans, and they prefer receiving these loans directly from brokers rather than doing them directly themselves.  Have a fantastic February!

Posted on February 5th, 2008 by Tropicasa
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An agreement of Governor Ney González Sanchez with the Infrastructure Undersecretary of the SCT, Óscar de Buen, ”will enable a project, wished for by Nayaritas for many years - the highway system of the Riviera Nayarit”, affirmed the Secretary of Planning, Pablo Montoya de la Rosa.

”Already there is a concrete agreement and we have determined who is going to build the highways, and which will be built by the federation and which by the state. The state of Nayarit will be beginning work, as the Governor announced in his second address, on an ambitious road plan of statewide highway concessions:

The first between Tepic and San Blas, the next between Tepic and Compostela, another between Compostela and Las Varas, and the last one would connect Las Varas with Bucerías, and all of them of four lanes ”.

This civil employee clarified that ”the federal government is going to also make its own freeway: the one that comes from Jala to Compostela and from Compostela to Puerto Vallarta. This is going to give the region a great transportation infrastructure for the integral development of the state ”.

With this, he added, ”the nayaritas will have open highways north to South which is the side of the state showing dynamic growth in tourism.

As well it is necessary to not forget the other highways that already are in process, like the Tepic-Aguascalientes and Ruiz-Zacatecas projects, that are both regional axes that come to form the road system of Nayarit that has been lacking, and that throughout many years, the nayaritas have yearned for. I believe that this is an extraordinary step taken by the administration of Ney González which will equip Nayarit with the basic infrastructure needed for years of economic development, generation of jobs, and most obviously, improvement in the level of well-being of the population ”.

Montoya de la Rosa explained that, ”indeed, the roadsystem of the Riviera Nayarit, by virtue of the need for 4 lane freeways requires very high levels of investment; estimated at 7 billion pesos, but in addition, the contract for the winning company establishes, in one of its clauses, that the 40 percent of the construction of these freeways will have to be done with local companies, which guarantees to Nayarit that the economic special tax of those 7 billion pesos, will remain in the region, with nayaritas industralists and workers, and this will generate an effect multiplying of the investment, and increasing the economic activity ”, which is very positive for our state, he concluded.

(original in http://www.banderasbay.com/viewad.asp?id=50285190602100024)

Posted on February 5th, 2008 by Tropicasa
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By Theresa Bradley, Associated Press Writers

Mexican Housing Markets Boom, Leads Latin America Despite Crisis in United States

MEXICO CITY (AP) — In her bustling corner real estate brokerage, Ana Laura Pulido is doing her best business in years, enjoying a sort of Mexican immunity from the U.S. housing crash.
“It’s a time of hope,” said Pulido, who has sold hundreds of homes to middle-income families since 1992. “The buyer today is more aware. People buy with more ease, they can plan long-term.”

Long thrashed by swings in the U.S. economy, Mexico now boasts a thriving housing sector whose record growth leads Latin America — a sign of increased economic stability and an outlet for investors looking to escape the U.S. downturn.

Giants including the California Public Employees Retirement System, the largest U.S. public pension fund, are already bankrolling projects in Mexico, where they see “more bang for the buck,” said Clark McKinley, spokesman for CalPERS, which has invested more than $300 million in Mexican real estate funds.

The trend could even slow emigration from Mexico, by generating millions in jobs and personal savings as a fresh supply of loans gives many their first chance to own a house.

President Felipe Calderon has set a national goal of a million new mortgages a year by 2010. On Monday, he unveils a set of measures to ensure growth continues, with plans to boost Mexico’s small resale market and combat the urban sprawl that has begun to carpet valleys with hundreds of thousands of matchbox rowhomes.

Behind the boom are six years of economic growth and stability, and a national shortage of 6 million dwellings. While interest rates are falling, just 6 percent of Mexico’s 25.7 million homes are financed with mortgages — compared to about 67 percent in the U.S. Most Mexicans still inherit their homes, buy them with cash, or build them by hand.

That pent-up mortgage demand in a nation of 108 million means lenders can be choosy, enforcing strict standards that held delinquency rates below 4 percent in third quarter-2007, compared to 5.6 percent in the U.S.

“Mexico is in the early stages of expansion,” said Juan P. De Mollein, managing director for Latin American structured finance at Standard & Poor’s. “There are still plenty of points for evolution because there’s still plenty of demand.”

In the U.S., lenders looking to expand their portfolios granted risky mortgages to borrowers with weak credit, but in Mexico, that “subprime” category doesn’t exist, because lenders don’t need it to grow. Also, few Mexicans flip homes or refinance mortgages, keeping the market more stable.

“Mexico doesn’t have a credit issue. We can still choose our borrowers because demand is so great,” said Mark Zaltzman, chief financial officer at Su Casita, one of Mexico’s largest mortgage lenders.

A recession north of the border could choke U.S. investment in Mexico, curbing job creation, discouraging new homebuyers and stalling housing growth.

But that won’t likely lead to mass layoffs and defaults, said Rafael Amiel, managing director for Latin America at the financial consultancy Global Insight. Mexico simply has too much room to grow, and expanding local markets have insulated it somewhat from U.S. downturns.

Housing demand could swell more as migrants are pushed home by the souring U.S. economy and crackdown on illegal immigration — generating four new jobs for every home raised, said Carlos Gutierrez, Mexico’s housing policy director.

All this represents a major change from 1994, when Mexico devalued the peso, sending inflation and interest rates soaring, forcing homeowners into default and pushing banks to the brink of collapse. Credit was so tight that most Mexicans paid cash upfront or constructed their own homes, often adding one room at a time.

Since then, Mexico has seen a housing recovery built on a mix of government initiatives, private investment and a winning gamble by a new group of entrepreneurs who took a local approach to mortgage lending, using knowledge of family and neighborhood connections to make sure loans got paid.

Rather than build public housing, the government restructured mortgage-lending laws, setting stricter credit guidelines, standardizing appraisals and urging lenders to raise cash on financial markets. It also overhauled Infonavit, a public agency that grants more than half Mexico’s mortgages, funded by a 5 percent payroll tax. Some 20,000 jobs were outsourced as the agency more than doubled new loans to 458,700 in 2007, director Victor Borras said.

And when commercial banks ran for the border, a new kind of lender stepped in, known as “sofoles,” for the Spanish acronym for “limited financial association.”

Taking advantage of Mexico’s tight family ties and government credits, these nonbank mortgage lenders set up neighborhood offices, requiring relatives to co-sign loans and collecting late payments door-to-door, proving profits could be made.

Banks have since returned, and blossoming competition drove average 15-year mortgage rates to 12.5 percent in November — a deal in Mexico, where rates topped 65 percent in 1995. Construction is booming too, as just 30 percent of new homes were self-built by their owners last year, down from 50 percent in 2004, Gutierrez said.

While big banks target higher-income borrowers, sofoles are pioneering mortgages for street vendors and taxi drivers, who work in the huge informal economy without documented salary or credit histories. Sofoles study spending habits to establish their income, offering trial payment periods to prove borrowers can afford payments on entry-level homes that range from $17,000 to $37,000.

Another huge potential market is the estimated 11 million Mexicans in the U.S., who can now buy “cross-border” mortgages to pay off homes in Mexico, increasing their control over the earnings they send relatives and cutting the time they need to work in the U.S. to build a future back home.

Even as home lending soars, overall debt remains low, making a Mexican credit bubble unlikely. Major mortgage insurers, including U.S.-based AIG United Guaranty and Genworth Financial, now back Mexican loans, slashing risk and making it easier for lenders to bundle and sell debt to investors as mortgage-backed securities — raising capital to grant yet more loans.

Nearly $5.8 billion of these securities have been sold since 2003, offering investors an alternative to tumbling U.S. markets and giving Mexico’s nascent pension funds, which have relied on lower-yielding government bonds, a place to store assets long-term.

Mexico’s housing sector is still full of risks, including land ownership disputes, infrastructure delays and limited access to water. The emphasis on private building has concentrated developments in wealthier states, while masses of poorer people still live on dirt floors.

Even so, millions of first-time homebuyers now have an asset to leave their children, or to use as collateral to finance future spending, fueling growth.

“I always had in my head that the only thing you can give your kids as inheritance is an education and a house,” said Antonia Correa. The 37-year-old receptionist paid $7,200 down on a three-bedroom stucco townhouse in a sprawling new development in Cuautitlan, outside Mexico City.

“You could be short on things,” she said. “But a roof is the best. It’s your world, your home.”

(Original at: http://biz.yahoo.com/ap/080120/mexico_housing.html)

Posted on January 29th, 2008 by Tropicasa
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by Maria Cortes Gonzalez - Sun-News (from banderasnews.com) 

The arrival of 2008 means it’s time to take a look at what’s new and what’s old. Aside from following fashion trends, homeowners may not want to get caught with outdated colors in the walls and wallpaper of their homes.

Of course, don’t be surprised to find that some trends — such as wallpaper that pays tribute to a vintage style — seem retro. Just the same, home industry insiders say that homeowners should expect to see more “green” in 2008, as in more interest in being environment-friendly.

Here’s a quick look at some of the trends that will be ringing in this year, according to national and local experts.

Aside from being a popular term for environmentally friendly
green will continue to be a popular wall color in 2008, experts say.

Eco-friendly

With energy prices being a concern, more homeowners are thinking about making “green” choices to save money.

Home Depot officials, for example, report that more homeowners made decisions to choose appliances that were energy efficient. The chain saw a 30-percent increase in sales of Energy Star appliances in 2006.

Choosing energy-efficient appliances is a win-win situation in many ways, experts say.

Homeowners may save hundreds of dollars in utility bills and conserve natural resources. Some banks, like JP Morgan Chase and Citigroup also are offering “energy-efficient” mortgages for homeowners doing green renovations.

Flooring solutions

“Tile seems to be getting bigger, as far as size,” said Barbara Malooly, a sales manager at Malooly’s Flooring Company, 765 N. Valley Dr.

“And people are using more natural stone, such as travertine and slate. They’re doing a lot of different designs on walls, pebbles and glass tiles, even metals.”

Malooly said people are using the natural stone in showers, even tiling entire walls in bathrooms, “to give it a spa look.”

Another trend is tiling arched ceilings in a hallway for a Tuscan look.

Because more and more tile is being made in China, Malooly said, tile prices are coming down making them competitive with Mexican tile prices.

Wood flooring will continue to be among the most popular flooring choices this year, said Lupe Villalva, co-owner of Floor Solutions in El Paso.

“Even though laminates are becoming better every year, there is better pricing on wood. So it’s more affordable,” she said.

Villalva said the darker woods are more appealing than lighter tones.

Something exciting to look forward to is a tile that has a pebbled look and feel to it, experts said.

“You can use it inside or outside. It gives a spa feel and the sheets of tile come with pebbles in different colors,” she said. “The texture is really cool.”

Designers say homeowners will be mixing vintage-looking
pieces with new pieces in their interiors.

Color scheme

Homeowners have been hearing the word “green,” in reference to more interest in being environment friendly. And so, it should surprise few that green will be a popular wall color in 2008.

Martha Medrano, an interior designer at Charlotte’s in El Paso, said homeowners will be interested in green, whether it’s in wall color or upholstery and other furnishings.

Plus, green appeals to all age groups, she said.

“Chartreuse is real popular with teen-agers, lime green with the younger set. And dark greens are great for reading rooms, master bedrooms and bathrooms,” she said.

Medrano said the greens evoke a soothing, homey feeling.

Mix and match

If you’ve been caught up in making sure everything blends together, it’s time to mix it up in 2008.

Davis Remignanti, lead design consultant at furniture.com says homeowners will be bringing some vintage into their lives.

“Vintage pieces bring a unique energy to a room’s decor. Sometimes it can be hard to tell which pieces are old and which are new,” he said in a statement.

When it comes to designing furniture, manufacturers also will be returning to smaller pieces instead of oversized furniture.

Another trend will be a revival of Baroque-style furniture and various technique including carving and decorative finishes.

Remignanti reminds homeowners that when it comes to designing a room, functionality is important.

“However well put together a room may be, it’s meant to be used. If a room isn’t comfortable and inviting for those inside it, it’s a design failure, no matter how stylish it may be,” he said.

More Americans will be purchasing energy-saving appliances such as this front-loading dryer.
This style can save as much as $110 on utility bills, Home Depot experts say. 

Backyards with bling

For several years, homeowners have been putting money into their backyards, creating unique retreats with amenities including outdoor kitchens and spas.

In 2008, homeowners will continue their passion for the outdoors, said Ann Mack, a trend spotter.

Basic pools will be transformed into tropical oases and outdoor kitchens will rival their indoor counterparts.

Las Cruces Sun-News features editor Richard Coltharp contributed to this article.

Maria Cortés González writes for the El Paso Times, a member of the Texas-New Mexico Newspapers Partnership. She can be reached at mcortes(at)elpasotimes.com.

Posted on January 17th, 2008 by Tropicasa
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By: R.C. Walker - Grupo Ecològico, (Original article in banderasnews.com)
On January 1, 2008 the state law requiring separation of garbage at all levels of the community entered into effect in Puerto Vallarta. Grupo Ecològico de Puerto Vallarta, A.C. hopes that this law will prove to be a major step to encourage recycling in our community. This can be your New Year’s resolution for the ecology in 2008.The law requires that garbage be separated and reduced in the home, office and business. Separation, initially, will include that of organic and inorganic.We are providing a translation into English of various of the articles of this law which we think are the most important. There is also information on how to obtain a complete copy of the law.You can find these translated articles at the Grupo Ecològico website: GrupoEcologico.com . The website also has a format of a Denuncia Popular (also translated into English) which will assist in making a denunciation as mentioned in Article 92 of the law.The experience of recycling anywhere in the world has proven that only with a high degree of community participation can a recycling program be entirely effective. We invite you to become familiar with the new law and to practice it in your home, condominium or business.

Posted on January 9th, 2008 by Tropicasa
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