Mexican wages are cheaper than China's: bank says

Mexico’s hourly wages are about a fifth lower than China’s, a huge turnaround from just 10 years ago when they were nearly three times higher, according to new research by Bank of America Merrill Lynch.

Stagnant salaries in Mexico, fueled by strong population growth, will give Latin America’s second-biggest economy an edge over China in the US market, Bank of America Merrill Lynch economist Carlos Capistran said on Thursday.

Average hourly wages are now 19.6 per cent lower in Mexico than China whereas in 2003 they were 188 per cent more costly, according to the Bank of America study.

Source: Reuters