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Analysis: Hope for Central America amid new US slowdown. Rising wages encourage investors to switch from China

Thursday, August 11, 2011

\ The conventional wisdom says that the US economic slowdown will be devastating for Mexico and Central America because of their excessive dependence on the United States. But the conventional wisdom may be wrong.\ \ A new phenomenon is turning out to be a blessing for Mexico and Central American countries — China’s rising wages.\ \ The appreciation of China’s currency and China’s increasingly skilled labor force are driving up Chinese salaries, moving growing numbers of US companies to relocate their manufacturing plants to Mexico, and to a lesser extent to Central America.\ \ Original source: Miami Herald\ \ \ \