Mexican economy: declining exports and stagnation
Experts expect the national economy will improve not that the USMCA has been signed - Photo: File Photo/EL UNIVERSAL

Mexican economy: declining exports and stagnation

29/01/2020
09:09
Mexico City
Editorial
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In the last year, Mexican exports have decreased and the country has faced a slow economic growth

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Mexican exports, considered as the main driving force behind national economy, registered the lowest growth rate since 2016, and have been affected by the government change and the risk of a global recession. The most affected industry is oil, as it registered a 21% fall in its exports, a dramatic reflection of the crisis Pemex is going through and which was sparked by corruption, fuel theft, and a constant fall in oil prices worldwide. However, the manufacturing sector registered a 3.4% increase in exports but when compared with 2018, it registered a 6% fall.

The most dramatic fall affected the automotive sector, as it registered a 4% in exports, which is lower than in previous years when there was a 12% increase. Yet this fall is the result of the attacks and threats issued by U.S. President Donald Trump against the companies with factories in Mexico.

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It is important to remember that the economy of a country is not isolated, in contrast, it is affected by commercial, energetic, and industrial activities all over the world. Therefore, it is expected that in case of a worldwide economic recession, this will affect all exports and imports, although it will affect the country even more if the government restricts its participation in the national economy since its support is essential to attract other national and foreign investors.

Although economic stagnation is understandable, especially in regards to exports, after the uncertainty sparked by the renewal of the NAFTA, now USMCA. Now that the trade deal between Mexico, the U.S., and Canada has been signed, it is expected that exports and imports increase in the incoming months.

Mexico needs to work to improve the national economy because if things are going well for the working class, this will also benefit the country.

Mexico's automotive industry is threatened by exports drop

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