Carmignac boss keeps faith in Mexico’s economic performance
Carmignac managing director Didier Saint-Georges has said the country could be the best-performing emerging market of 2017, despite much of Donald Trump’s campaign rhetoric focusing on restricting immigration and trade from Mexico.
The Mexican Peso lost 10 per cent against the US dollar in the initial aftermath of the election, but Mr Saint-Georges has backed Mexico’s economic positioning.
He said: “Mexico has strong macroeconomic fundamentals and a sound financial system with liquidity and foreign exchange reserves.
“The depreciation of the peso over the past two years – losing 23 per cent since December 31 2014 – has boosted foreign direct investment.”
He added that he believed Mr Trump was unlikely to fully implement his campaign promises, while the Mexican central bank had the means to support the country’s market in the event of a sell-off.
“Sovereign debt offers positive real rates of 2.15 per cent and we expect the country to deliver a primary fiscal surplus next year,” he said.