Delta Economics expects Mexico to weather the latest economic storm. Emerging markets have taken a hit in recent weeks due in part to a combination of lower oil prices and increased volatility in the commodities market. However, the uneasiness is likely to have a relatively modest impact on Mexican trade in the short term. Healthy economic fundamentals and its reliance on the US market, where about 77% of Mexican exports end up, are proving to be a boon to the economy. The tech-related bellwether sectors are forecast to perform especially well; Delta Economics forecasts growth in mechanical appliances and machinery/computers of 9.1% in October, up on the previous year, whilst purchases of road vehicles will grow by 8.4%. Electrical Machinery will grow by a more modest 1.7% in October.
On the other hand, some of the fellow MINT nations may not be as fortunate. Whilst Mexico’s trade is predicted to grow year-on-year by 5.5% this month, Nigeria is expected to contract by -5.2%; Indonesia too may feel the pinch due to its reliance on commodity exports. Emerging markets face choppy waters ahead and only those with diversified trade portfolios will come out stronger on the other end. For more information, visit Delta Economics and @DeltaEconomics.
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