Mexico’s trade with Asia is set to strengthen according to Delta Economics. The forecast for December is especially encouraging: outbound goods to China will see a 14.4% rise on the previous year, whilst exports to Japan and India will see respective improvements of 8.3% and 13.6% year-on-year. Indeed, we expect Mexican trade with a number of other Asian nations to exhibit strong growth. For example, exports to South Korea will grow by 15.2% year-on-year, to Singapore by 13.3% and with Hong Kong by 10.6%. However, Delta Economics is also seeing strong movement in trade coming back to Mexico, a term known in the industry as re-shoring.
Whilst wages tend to be lower in China and Asia, Mexico offers greater flexibility for businesses in terms of shorter supply chains and more favourable economic conditions. We see technology sectors returning to North America to be closer to their customer base and some of these are doing particularly well: as a result, growth in sectors for vehicles, which include items such as cars, trucks and motorcycles, are expected to grow year-on-year by 6.4% in December, whilst exports in heavy machinery, which include items such as office and household appliances as well as computers, will see year-on-year growth of 7.4% in December.
For more information, visit Delta Economics.
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