Mexico is the new frontier with increasing numbers of Americans and Canadians investing in property according to one of the leading estate agents.

International property investors are increasingly finding bargains in quiet backwaters. Yet these bargains are in accessible countries like Italy, Mexico and Uruguay, rather than in emerging markets with poor infrastructure.

Mexico is emerging as an alternative for foreign property investors who are wary about putting their money into the US market.

According to reports, Mexico's consumer prices rose because of the inflationary effects of property and food. Still, foreign investors see the market as an ideal location.

In the hopes of boosting the economy. the US economic slowdown is already triggering a stimulus package for the Mexican government.

The Mexican government has dropped its growth forecast for 2008. The reason is the US economic recession worries plaguing most of the world.

Mexican inflation was less than expected, but inflation pressures are on central bank to make a rate cut in hopes of protecting Mexico's economy.

Mexican market is booming, with interest rates falling and with much lower delinquent mortgages than US. Investors are watching.

In an expected move, Mexico's central bank holds benchmark lending rate steady, with prices increasing and economy weakening.