Installation of foreign companies in Mexico, a phenomenon known as resettlement or “nearshoring” can lead to an increase in gross domestic product (GDP) by 8%. countries in the next six years, Banco Santander calculated on Wednesday.
Thanks to this phenomenon, and also according to the report “Monitoring data in Santander”, By 2023, Mexico will account for 20% of US imports compared to the current 14%.
“The process of moving factories from China to Mexico or other regions for supply to the US market is an unprecedented trend that Mexico should take advantage of,” Santander said in a statement on Wednesday.
According to an analysis by the bank’s Equity Strategy and Analysis team, every percentage point Mexico receives as a share of North American imports means a 1.3% acceleration in GDP.
“He generates powerful investment, demand from suppliers, especially small and medium-sized companies, jobs and infrastructure, both in the entities that are part of the industrial corridors, and in those located in the south of the country,” the report says.
The business sectors most associated with nearshoring are automobiles, auto parts, and technology, but it can also have a positive impact on aviation, medical equipment, or apparel.
The US, according to the study, is the largest buyer of goods in the world, which come mainly from China (17%) and Mexico (14%).
Mexico’s share, as noted at a press conference by Alan Alanis, director of stock market analysis and strategy at Santander México, is $566 billion, making it the leader in international trade in manufactured goods in Latin America.
Alanis noted that Mexico is experiencing “one of the best moments in the last 70 years” thanks to the fact that its accounts are balanced. the monetary policy of the Bank of Mexico (Banxico) is “adequate” and there is “absolute” commercial coherence with the United States.
“Mexico is experiencing a historic opportunity for the near abroad,” he concluded.
Although the Santander Nearshoring Data Monitor indicates that $500 billion worth of Mexico’s exports come from the northern states and the Bajio region in the center of the country, the south will also benefit from the infrastructure work that has developed there.
To this end, Banco Santander offers support to companies seeking to enter the country through its “International Department” by offering financial solutions such as working capital financing without additional debt.
The head of this sector of the company, Rodolfo Hernandez, explained that during 2022 they advised 300 companies, and at the beginning of the year – about 90.
(EFE)
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
