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Mexico is now the 12th largest economy in the world
- bhpm 3y agoTexas’ proximity to Mexico is a dream for both. Cheap, clean energy, an abundance of workers, and a stable trading partner.
- pram 3y agoYeah there’s been a ton of growth in Monterrey, it feels very new and modern like all the development in Austin. I’m very optimistic about northeast Mexico.
- CPLX 3y agoMonterrey is a very impressive city. San Pedro feels basically indistinguishable from California at a quick glance.
- asylteltine 3y agoCheap/clean energy and Texas don’t seem to line up. They have an oil and natural gas monopoly that goes all the way up to their elected officials. It’s literally why they had that massive grid failure. It wasn’t a capacity issue it was just greed.
- jeffbee 3y agoTexas nevertheless enjoys an abundance of renewable energy sources. They have more than any other state including California and are adding more faster than any other state. Their renewable fraction is still not as high as California, because they use so much more energy, but their absolute numbers are very high. Texas also has a natural advantage that their solar resources are far to the west of their population centers, so their "duck curve" looks a little more tolerable.
- philwelch 3y agoTexas produces the most wind power and the second most solar power of any American state. The most recent power shortage in September was caused by low evening winds; the US DoE responded by allowing Texas to temporarily exceed emissions limits from their gas plants: https://www.ercot.com/about/legal/doe202c https://www.ercot.com/about/legal/doe202c
- singhrac 3y agoTexas exists at the crossroads of both the Midwestern Wind Belt (actually, it gets SE coastal wind too) and the Sun Belt. Also, it has large open areas that are sparsely inhabited, pretty much ideal for building large renewable power plants. The only challenge is paying for transmission. There's a huge oil & gas industry too, but that energy is more easily exportable (see e.g. Freeport LNG), which can put a floor on prices.
- beepbooptheory 3y agoIndeed, 2021 was absolutely terrible: https://en.m.wikipedia.org/wiki/2021_Texas_power_crisis https://en.m.wikipedia.org/wiki/2021_Texas_power_crisis especially enraging to me: > To cover debt incurred due to high natural gas prices, utilities outside Texas have had to raise prices. Oklahoma Natural Gas is charging customers up to $7.80 per month for the next 25 years to securitize its costs of $1.4 billion during the crisis.[133] The natural gas industry reaped a windfall profit of $11 billion during the crisis.[22] Texas gas utilities were permitted by the Railroad Commission to issue bonds to cover what they paid to suppliers, to be paid off by customers. Municipal gas companies have also added surcharges to bills
- nunez 3y agoTexas has the biggest wind farm output in the US (5th biggest in the world) and the biggest solar power potential in the US.
- Racing0461 3y ago> abundance of workers this doesn't benefit the average texan. you are thinking like a billionaire that you aren't.
- midasuni 3y agoMost people on HN are temporarily embarrassed billionaires waiting for their next startup to be graced
- bhpm 3y agoTexas depends on immigrants to grow its economy… Immigrants in Texas' workforce contribute $119 billion to the Texas economy annually in personal income, making up nearly 1 in 5 of all wage dollars in the state. Further, immigrants make up significant shares of workers in industries like construction (37%), business services (23%), and manufacturing (26%). Immigrants make up even larger shares of more specific essential industries, like 53% of landscaping services, 47% of building services, 42% of meat processing, 22% of restaurant and food services, and a third or more of several manufacturing industries, including those that produce plastic products and electrical products. I’m not sure what you had in mind when you said the average Texan doesn’t benefit. It seems like they do, since the average Texan lives in a home, comes in contact with landscapes, and uses … products. I’m thinking like someone who lives in Texas and comes in contact with immigrants. Guest workers, first and second generation Americans. It’s impossible to live in any sizable city in Texas and not see that immigrants are essential to Texas’ economic success. https://www.dallasfed.org/research/economists/~/media/documents/research/swe/2018/swe1801b.pdf https://www.dallasfed.org/research/economists/~/media/docume...
- silisili 3y agoIt shows in the housing. Prior to runaway housing costs(2018 or so), you could get a house in El Paso that almost looked like something out of Scarface for under 300. It's gone up quite a bit now, but still cheaper than much of the nation.
- manymatter 3y agoEconomy size is very interesting in itself and has a lot of relevance in some decisions, but per capita has always seemed more important to me, i.e. the Italy and Russia comparison as similar size economies is an interesting one. Mexico is apparently 10th in population.
- cpursley 3y agoGDP PPP is the one that matters.
- justsomehnguy 3y ago> but per capita has always seemed more important to me > i.e. the Italy and Russia comparison as liknande size economies Every time I hear "hur-dur economy less than Italy" (mostly on Reddit, ofc) I always remember a funny trivia: there are more pensioners in Russia (40M+) than everyone in 15-65 y/o gap in Italy (36M). So yes, economy size without a tie to the population size and social, geographic and other measurements is.. misleading at best. https://www.statista.com/statistics/1093953/number-of-retired-people-in-russia/ https://www.statista.com/statistics/1093953/number-of-retire... https://www.statista.com/statistics/569201/population-distribution-by-age-group-in-italy/ https://www.statista.com/statistics/569201/population-distri...
- manymatter 3y ago> I always remember a funny trivia: there are more pensioners in Russia (40M+) than everyone in 15-65 y/o gap in Italy (36M). Yes, that's the kind of trivia I find puzzling as Italy has a higher percentage of people over 65.
- eatonphil 3y agoDemographics-wise it makes sense that Mexico passed South Korea and Australia. And long-term it's projected Mexico will get up to 7th place by 2050. https://www.independent.co.uk/news/business/these-will-be-the-32-most-powerful-economies-in-the-world-by-2050-a7587401.html https://www.independent.co.uk/news/business/these-will-be-th...
- asylteltine 3y agoHow does one invest in this to ride the wave?
- willsmith72 3y agoThere's the VMEX etf if that's the kind of thing you're looking for
- elijah_moham 3y ago[dead]
- StevePerkins 3y agoI'm not sure about this symbol. It can't be found at all on Schwab or Fidelity's websites, and Yahoo Finance only has "VMEX19.MX" with no historical information. The only mainstream ETF that I'm aware of for Mexico is BlackRock's EWW. I held that for a little while this past year, and wish that I had held far longer since it blew the doors off the S&P 500's returns. However, I would only recommend putting a little play money in an investment like this. Not shifting your entire retirement savings into it. An investment in Mexico is really more of a short-term forex play than a matter of where the Mexican economy may or may not be several decades from now. Economically, Mexico is very much a vassal state of the USA. If things go badly enough for the U.S. economy to fall behind, then odds are Mexico would be heavily impacted by those circumstances directly or indirectly.
- redandblack 3y agoLikely to be faster given Chinese EV companies are starting factories, which will help Mexico to transition their already strong ICE economy to the new era
- amadeuspagel 3y agoAccounting for population growth, Mexico is one of the most successful countries. The standard way of measering growth on a per-capita basis doesn't account for this, but that's a bias towards resource-rich countries with declining populations.
- willsmith72 3y agoWhat are some example countries with declining populations with strong per-capita growth?
- jeffbee 3y agoCroatia, Moldova.
- rpastuszak 3y agoPoland?
- jeffbee 3y agoGood choice. Also Albania, with a long-term population decline and quite strong economic growth.
- corysama 3y ago“Poland will be wealthier than Britain by 2030” https://www.telegraph.co.uk/business/2023/05/07/poland-europe-superpower-communism-putin-military/ https://www.telegraph.co.uk/business/2023/05/07/poland-europ...
- jeffbee 3y agoAmerica should agree to merge with Mexico. It would be more powerful than anyone has imagined.
- philwelch 3y agoThis isn't a new idea: https://en.wikipedia.org/wiki/All_of_Mexico_Movement https://en.wikipedia.org/wiki/All_of_Mexico_Movement
- lnxg33k1 3y ago[flagged]
- jeffbee 3y agoIn English, singular "America" normally refers to the United States of America, not the entire western hemisphere.
- SOLAR_FIELDS 3y agoIndeed, if you wanted to refer to MEX, CAN + USA as one entity you would use “North America”. But America is colloquially understood to mean USA
- toomuchtodo 3y agoNorth American Alliance has a ring to it like the European Union.
- jdmg94 3y agoIt also means the entire _Continent_ your take is pretty US-centric
- dragonwriter 3y ago> It also means the entire _Continent No, it doesn't. "North America" is the continent the USA is on, and South America is a neighboring continent. There is no continent called "America" alone.
- User23 3y agoThe USMCA has been very good for Mexico. It’s one of those facts that’s off narrative so virtually nobody knows it’s so.
- nojvek 3y agoWhat is USMCA?
- dragonwriter 3y agoThe replacement for NAFTA. https://en.wikipedia.org/wiki/United_States%E2%80%93Mexico%E2%80%93Canada_Agreement https://en.wikipedia.org/wiki/United_States%E2%80%93Mexico%E...
- domatic1 3y agoIf they would include the drug dealers money probably it would be up a few more spots.
- elijah_moham 3y ago[dead]
- amelius 3y agoIs that a good thing or a bad thing?
- AnimalMuppet 3y agoIt's a rather surprising thing.
- incognition 3y agoNot me. Deep in fmx and omab
- stevenjgarner 3y ago"Professional services firm PricewaterhouseCoopers predicted in 2017 that Mexico will be the 7th largest economy in the world in 2050."
- onetokeoverthe 3y ago[dead]
- nine_zeros 3y agoMexico has been developing faster than the usual suspects in Asia. It is almost fascinating to see the boom in Mexico since around 2016. More and more Americans are expatriating or gaining residencies in Mexico to escape from America. And I can see the allure of a modern, rapidly developing life in Mexico as opposed to rent-extraction-life in America.