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By Tim Seymour

Mexico's (NYSEARCA:EWW) Q1 GDP expanded 0.8% compared to the first quarter of last year. "Southern Texas" is growing much slower than its neighbor to the north. A lot of the infrastructure and industrial growth has really fallen off. Services remain strong, but questions remain whether or not the Mexican economy becomes a victim of its own success.

In the last two years Mexico has had a better labor market than the U.S., so many migrant workers actually reversed immigration and emigrated back. But now the stronger currency and higher costs actually may be crimping growth. While the U.S. economy might be seeing seasonal falloff in Q2, it will be outperforming not only Mexico, but also many of the high-growth emerging markets.

Russia (NYSEARCA:RSX) reported a dismal 1.6% Q1 GDP this morning. Brazil (NYSEARCA:EWZ) is growing 1.2%, South Korea (NYSEARCA:EWY) is up 1.5% -- the list goes on. And we wonder why the S&P 500 is outperforming emerging markets.

Source: Mexico's First Quarter Expands Only 0.8%