Mexico Manufacturing Expected To Slow Growth Rate
Mexico Manufacturing, even cut at half its 2010 pace, will still likely grow in excess of 4% this year and keep pace in the same fashion during 2012 as well. Along with two of its Latin neighbors, Argentina and Brazil, Mexico’s economy is still expanding and expected to continue the trend, according to Manufacturers Alliance/MAPI. Down from an impressive 9% growth rate in 2010, Mexico’s economic expansion is still strong with the automotive industry leading the way. Mexico manufacturers enjoy an export-driven demand from reliable U.S. markets, as well as a more robust domestic consumer market within Mexico itself.
By contrast, Brazil’s manufacturing sector has experienced a noticeable slow-down due in part to imported goods, a stronger currency and a skilled personnel scarcity to staff factories. Argentina is benefitting from Brazil’s continued demand for imported manufactured goods which ironically account for some of Brazil’s production losses. In addition, Argentina gains from its own domestic consumption boom and wage adjustments, boosting their standard of living. MAPI consultant, Fernando Sedano, states that Mexico manufacturing’s engine is being driven by the rapidly expanding automotive market, along with food and beverage increases and machinery and equipment production.