Ships, cars, and computer parts are the top exports from Mexico, which shows that the U.S. wants more industrial goods from its southern neighbor. Exports of boats made in Mexico went up 266% in September compared to the same month last year. This made boats the fastest-growing item among Mexican exports worth more than $100 million, according to data from the central bank that came out last week.
According to the data, the most valuable things exported in the month were computer parts and passenger cars, each worth about $4.7 billion. According to the National Institute of Statistics and Geography, the second-largest economy in Latin America shipped a record $52.3 billion worth of goods in September, which was a 25 percent increase from the same month last year (Inegi). More than 80% of them are sent to the U.S., which is by far Mexico's biggest trading partner.
"Unmet demand in the U.S. is a good explanation for part of that boom," said Rodolfo Navarrete, who is in charge of analysis at Vector Casa de Bolsa SA in Mexico City. According to data from the central bank, exports of train cars went up by 174% in a year, while retail sales of drugs went up by 60%.
Shipments of cars and car parts went up by 44%, while malt beer went up by the same amount as petroleum, which was 27%. The export boom in Mexico is happening at the same time that the government is trying to figure out how to get companies to invest in Mexico so they can sell goods to the U.S. market instead of setting up shops in Asia. This is a trend called "nearshoring."
This month, Raquel Buenrostro, Mexico's Secretary of Economy, said that more than 400 companies in Asia wanted to move to the Latin American country. A new report from Barclays Plc says that if Mexico takes full advantage of the trend, its exports to the United States could grow by about 38% in the next few years.