Brazil’s Odebrecht plans to invest $8.1 billion in Mexico’s infrastructure in the next five years (Reuters,FT).
Brazil hasn’t invested much in Mexico previously. Since 1999, Brazilian companies have only invested $1.2 billion total including $61.3 million last year. The Odebrecht, [which works in fields including construction, chemicals, and engineering], investment by itself will be an increase by an order of magnitude in the economic links between the two countries.
So, even as short term economic news about both Mexico and Brazil appears to be pessimistic (confounding the whole Mexico vs Brazil debate), this investment is good news for both and a big bet on each other.