Is Mexico's Nearshoring Boom Here to Stay?

Mexico's manufactured exports have increased by 3.2% annually, giving way to an unexpected trade surplus. The country's total shipments abroad rose to $53.6 billion in March as the country continues to benefit from an arrival of investments and factories that eagerly sought to ship across the US border, the so-called Nearshoring boom. Manufacturing exports, led by automobile production, grew by 5.3% compared to the previous year. Goldman Sachs warns that there is uncertainty within the US economy which poses a risk to Mexico's growth in the future. However, speaking earlier this week, Mexico's central bank Governor Victoria Rodriguez stated that nearshoring was "a vital opportunity for the tropical nation."

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