Last week, Mzuvukile Geoff Maqetuka, South Africa’s envoy to Russia, dropped a bombshell: 25 nations, including Mexico, are itching to get into the BRICS club, as reported by Eurasia Network. This bit of news isn’t just chit-chat; it’s a big deal, coming at a time when Mexico and the United States are butting heads more than usual. The bone of contention? A laundry list of issues like illegal border crossings, border security, the drug trade, and a few other spicy topics.
The tension has gotten so thick you could cut it with a knife, leading the U.S. to slap tariffs on Mexican goods and dangle the threat of cutting off aid. Mexico’s response? “We’re looking at BRICS, thank you very much.” This isn’t just any club Mexico wants to join; it’s a group of countries that are seen as a counterweight to the U.S. And if BRICS gives Mexico the nod, it’ll be a milestone: the first country from South America and the first neighbor of the U.S. to join the ranks.
“The line-up of countries ready to join BRICS is nearly 25 strong,” said the South African ambassador in a chat with Tass. But don’t pop the champagne just yet; it’s not a done deal. All the BRICS members have to give the thumbs up, and they’re not meeting to talk it over until a summit in October.
Mexico’s economy is limping along, barely showing any growth in the last quarter, which could mean it’s time for the central bank to start cutting interest rates, following the lead of others in the region. The numbers are pretty stark: GDP nudged up a measly 0.1% in the last bit of the year, with both manufacturing and construction taking a hit. Yet, there’s a silver lining since the economy did grow 2.5% compared to the same time last year, ending up with a 3.2% increase for the whole year.
But let’s get real: Mexico’s the odd one out in Latin America, sticking with high interest rates (a whopping 11.25%) that are putting the squeeze on everyone’s wallet. The slow growth, coupled with a surprising drop in inflation, has folks like Alberto Ramos, a big brain at Goldman Sachs, saying it might be time for the central bank to make a move and cut rates in March.
And it’s not just the big industries feeling the pinch; agriculture and construction both shrank by 0.1%, while services managed a tiny bit of growth at 0.3%. Looking ahead, experts think Mexico’s GDP might grow by 2.4% in 2024 and slow down even more in 2025 to 1.9%. Gabriela Siller from Grupo Financiero Base doesn’t mince words, calling it a clear sign of the economy hitting the brakes hard.
On the inflation front, there’s a bit of good news: it slowed down more than anyone guessed, dropping to 4.45% in early February. This was a surprise to all the number crunchers who thought it would be higher. Even the core inflation rate, which ignores the prices that jump around a lot, like food and fuel, came in lower than expected.
Let’s not forget, Mexico and the U.S. are joined at the hip economically, with the U.S. being Mexico’s biggest trading partner by a long shot. But with both countries heading into an election year, there’s a whole new level of uncertainty about what the future holds.
