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Made in Mexico

Mexico, the third largest country in Latin America, currently accounts for 12.3% of the US's imports and is predicted to overtake China in 2018 as they benefit from China's rising wages.

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Mexico's economic woes seem to be behind them with the recently released figures showing that the Mexican economy is one of the fastest growing in the world.

In 2008, shortly after the financial crisis, Forbes, the American news source forecasted a "Mexican Meltdown", they, along with other doubters, are seemingly being proved wrong.

Although Mexico was hit hard by the financial crisis, their revival and subsequent drive forward made them stronger than ever as they posted consecutive growth in GDP for the past two years, at 3.9% and 5.5% respectively. Mexico, the third largest country in Latin America, currently accounts for 12.3% of the US's imports and is predicted to overtake China in 2018 as they benefit from China's rising wages. China's work force have been demanding a slice of the country's wealth and as a result, companies like FoxConn, which assemble Apple iPads in China, announced a 16%-25% rise in wages in March this year.
This is a visible display of the consistent pressures for wage hikes in China. This places pressure upon other Asian economies such as Thailand and Malaysia that have both recently implemented minimum wage structures.

Oil prices increasing fourfold in the past decade have encouraged economies to collaborate with markets closer to their borders/waters; in this sense, Mexico has benefitted the most as it borders with U.S., the largest economy in the world. Imports from China sometimes take up to 3 months, grouped with high transportation costs; Mexico on the other hand, can transport goods within a matter of days at lower costs.
Net migrations between the two countries is zero, suggesting that Mexicans no longer feel the need to pour into the US as the tide is changing in Mexico as there are now more job opportunities with firms like VW and Wal-Mart, better health services with the improved "Universal Health Care" and a falling crime in some places in Mexico.

Mexico is also dealing well with competition from Brazil, its closest competitor in Latin America. According to The Economist, Mexico grew faster than Brazil. Other impressive figures coming out of Mexico are that it is the world's 4th largest automobile manufacturer, behind heavyweights Germany, Japan and South Korea (who it is forecasted to overtake).

Despite this, it still has serious social issues including its drug cartels war on the government, which has claimed hundreds of lives, being home to murder capital of the world (Ciudad Juarez) and the ever present poverty. The government's stance and future action regarding its countries violence and drugs could prove to be crucial in Mexico's quest to become one of the world's leading economies.

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1 Comment

me Posted on Sunday 18 Aug 2019

Mexico is the second largest country in Latin America, after Brazil.

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