MNI BRIEF: Canadians Fuzzy On How BOC Hikes Slow CPI, Government's Role

CANADA FLASH MAY GDP +0.1% ON FACTORIES AND REAL ESTATE

MNI China Daily Summary: Friday, June 28

MNI BRIEF: BCB Evaluating Real Depreciation Impacts - Galipolo

MNI BRIEF: PBOC Pledges to Curb Any Overshoot Of The Yuan: MPC

MNI: PBOC Net Injects CNY40 Bln Via OMO Fri; Rates Unchanged

MNI: BAKER HUGHES US RIG COUNT 581; OIL RIGS 479; GAS RIGS 97

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

EZ/UK Bond Supply Calendar: BoE APF on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Goldman Sachs Expect Mexico To Be Main Beneficiary Of Near-Shoring Trend

MEXICO
EM BulletHomepagemarkets-real-timeBulletEmerging Market News
  • Goldman Sachs note that there are several channels through which LatAm could benefit from the ongoing relocation of manufacturing clusters and the repositioning of global value-added chains. They estimate that the near/friendly-shoring opportunity for LatAm could lift manufacturing exports by roughly $90bn (1.6% of GDP), with a 7.3% boost to overall exports.
  • By their calculations, Mexico would be the main beneficiary with an estimated $71bn increase in manufacturing exports (4.0% of GDP). They note a number of comparative advantages, including competitive/low unit labour costs, a large manufacturing base highly integrated with US, and proximity to the US. Furthermore, Mexico benefits from trade and investment preferences and protections under the USMCA.
  • Mexican exporters have already been gaining market share in the US, recently surpassing China as the top exporter of manufacturing goods to the US. However, to ensure that the near-shoring opportunity translates to transformational growth and development, GS believe that it needs to be levered by reforms to overcome perennial impediments to capital formation and productivity growth.
165 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Goldman Sachs note that there are several channels through which LatAm could benefit from the ongoing relocation of manufacturing clusters and the repositioning of global value-added chains. They estimate that the near/friendly-shoring opportunity for LatAm could lift manufacturing exports by roughly $90bn (1.6% of GDP), with a 7.3% boost to overall exports.
  • By their calculations, Mexico would be the main beneficiary with an estimated $71bn increase in manufacturing exports (4.0% of GDP). They note a number of comparative advantages, including competitive/low unit labour costs, a large manufacturing base highly integrated with US, and proximity to the US. Furthermore, Mexico benefits from trade and investment preferences and protections under the USMCA.
  • Mexican exporters have already been gaining market share in the US, recently surpassing China as the top exporter of manufacturing goods to the US. However, to ensure that the near-shoring opportunity translates to transformational growth and development, GS believe that it needs to be levered by reforms to overcome perennial impediments to capital formation and productivity growth.