Mexico, among the most open economies in the world

Amid global economic uncertainties and geopolitical tensions, Mexico’s key sectors demonstrate remarkable resilience. The latest CIAL Insights report by Dun & Bradstreet highlights pivotal economic trends, underscoring foreign trade’s vital role and policy synergies:

April 2025 manufacturing exports hit $48.6 billion (90% of total exports), with 6.9% annual growth, reaffirming their economic engine status. Sectoral divergence persists: auto exports fell 1.9% monthly and dropped 3.3% year-to-date, while basic metals surged 12.1% annually despite new tariffs up to 50% effective May.

Foreign trade represents 73.1% of projected 2025 GDP, making Mexico one of the world’s most open economies—far exceeding Canada (52%) and the US (18.4%). Since NAFTA’s 1990s implementation, this ratio peaked at 80.6% in 2022.

Local indicators signal pressure: INEGI data shows a 0.3% annual GDP contraction in May, with secondary sector output down 1.1%. Private consumption (69% of GDP) recorded its first annual decline (-0.8%) since 2021 due to deteriorating employment, remittances, and wages. Gross fixed investment fell 6.8% YoY in Q1, marking two consecutive quarterly drops.

Monetary policy adapts: Banxico may cut rates to 8.00%, creating a 375-basis-point spread with the Fed’s 4.50% rate—the narrowest since 2016. The peso remains stable, averaging 19 per USD.

The US economy shows contrasts: unemployment holds at 4.2%, but January-May nonfarm payrolls grew just 619,000. Auto production fell 4.8% while sales rose 7.0%; retail consumption grew 4.4% in the first five months.

CIAL Insights emphasizes that balancing economic openness, domestic stability, and global strategy is crucial for navigating challenges. Despite sectoral pressures, Mexico’s adaptability solidifies its role as a global trade powerhouse.

Source: https://mexicoindustry.com/noticia/mexico-entre-las-economias-mas-abiertas-del-mundo-cial-insights