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Help From Abroad Is Firing Up Mexico's Economy


Economic Trends

HELP FROM ABROAD IS FIRING UP MEXICO'S ECONOMY

What's North America's healthiest economy? Believe it or not, right now it appears to be Mexico, which posted 5.6% annual growth in the second half of last year, while its two trading partners to the north sank deeper into a slump. The acceleration, says economist Robert Gay of Morgan Stanley & Co., reflected a surge in fixed investment, particularly by foreign companies responding to Mexico's new economic stability and more liberal investment rules.

Gay points out that a growing share of new foreign direct investment will be coming from Asia, with Japan alone committing $3 billion last year for future investment projects. And with a free-trade agreement on the horizon, foreign interest in Mexico should quicken. Morgan Stanley expects Mexico's economy to grow 4.2% this year and 4.5% in 1991.GENE KORETZ


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