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Mexico export growth is at risk, says Bank Of America

Thursday, May 11, 2017

Mexico's export growth of 6 percent may not be sustainable, despite better demand growth mostly from Asia but also from the United States.

The peso has rallied by 10 percent against the U.S. dollar this year, but remains weaker by 5 percent against the greenback over the past 12 months, and that has contributed to the appeal of Mexican exports. Bank of America Merrill Lynch Economist Carlos Capistran et al note that Mexico's export growth has contributed to healthier GDP and external accounts despite the uncertainty of U.S. policy on trade under President. But the growth stands in contrast to trade contractions in recent years.

Source: Barron’s