Political Risk Latin America Blog @PolRiskLatam

Mexican labour: almost as cheap as China

Posted in News and Articles, Political Risk by politicalrisklatam on December 15, 2010

by Adam Thomson for Financial Times – Beyond Brics, December 14th, 2010.

Barely a year after Mexico emerged from the worst economic contraction in more than 70 years, the country’s exports have never had it so good. During the second half of this year, non-oil exports reached an all-time high of $23.5bn in August, and manufactured exports reached their highest monthly level since 1993, the year the series started.

In an interesting and upbeat research note, Sergio Martin, HSBC’s economist in Mexico City, explains why.

For one, he notes that in recent years – and this year in particular – Mexico has diversified its export markets, with a greater percentage of the total now going to Asia and Latin America – regions of the world that came through the crisis better than Europe and the US, and that are now growing strongly.

He also points out that Mexican exports have won a bigger slice of the US market – even if it is a smaller market than it used to be. That, Martin argues, is because Mexico has become more competitive with respect to its principal competitors. (continue reading… )



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