Amid GDP Slowdown, Domestic Demand to Sustain Growth: Comce Northeast
The Northeast Mexican Council for Foreign Trade (Comce) highlights that, in the face of the projected slowdown of Mexico’s Gross Domestic Product (GDP) to 2.5%, domestic demand will play a crucial role in sustaining economic growth. While long-term challenges such as low productivity are anticipated, nearshoring and the United States-Mexico-Canada Agreement (USMCA) will bolster Mexico’s economy. Additionally, the ongoing reconfiguration of global value chains could stimulate investment in the country. However, risks persist, such as inflation and the need to address structural challenges like productivity and security.
Furthermore, an uncertain global economic environment is observed, with inflation gradually receding and emerging benefits from nearshoring for Mexico. The proximity to the United States and the implementation of the USMCA are expected to drive foreign direct investment and strengthen the Mexican economy and currency.
Moreover, a downward trend in the unemployment rate and GDP growth in the last year are noted. Foreign trade, including exports and imports, represents a significant portion of Mexico’s GDP. In this context, the Comce Northeast is working on updating proposals to enhance the competitiveness and development of Mexican foreign trade in collaboration with other relevant organizations.
To read the full article: https://www.eleconomista.com.mx/estados/Ante-desaceleracion-del-PIB-demanda-interna-sostendra-el-crecimiento-este-ano-Comce-Noreste-20240308-0097.html