Mexican exports to the US achieve higher growth rate than China’s
During the first three months of 2014, Mexican exports to the United States totaled US $69.1 billion.
The aforementioned figure represents a 3.7% rise in dollar value over the same period year over year. Through the first three months of the present year, Chinese exports to the United States grew at a rate of just 3%. In dollar terms, product shipped to the US from China was valued at a bit over US $100 billion during the months of January, February and March. In contrast, imports from the other US major trading partner, Canada, decreased by .6%, and had a value of $ US 81.5.
The United States is Mexico’s largest commercial market with 80% of Mexican exports being sold in the US. Mexico supplies a wide variety of goods to the US that includes items such as crude oil, automobiles and light vehicles, aerospace parts and equipment, trucks, extracted minerals such as gold, as well as computers and a long list of agricultural commodities and goods. Mexican policy, mainly through the implementation of a large network of free trade accords, is aimed at diversifying the global clientele. The diversification of buyers of Mexican exports will diminish the disproportionate influence that the US economy exercises over that of its southern neighbor.
Mexico’s GDP grew at a sluggish rate of 1.1% in 2013. Banco Bilbao Vizcaya Argentaria (BBA) economist, Kim Fraser, expects that the United States overall GDP growth will reach 2014, and that Mexican economic performance will track that number.
According to information released by the Institute of Supply Management (ISM), the ISM manufacturing activity index registered 54.9 during the month of April. Any number over 50 indicates the presence of growth in the sector. According to the ISM, this is the best figure registered since December of 2013. Increased US manufacturing activity should reflect positively on activities in the sector in Mexico, thereby energizing Mexican export activity.
Read the primary source for this post in its original Spanish at El Economista.