The United States will boost Mexico’s exports in 2021
The United States will boost Mexico’s exports by becoming one of the main engines of the world economy, UNCTAD estimated.
UNCTAD expects some economies to recover stronger and faster than others in the current year.
In particular, the economies of China and the United States of America are expected to be the main drivers of global growth during 2021.
This should also have positive effects on countries whose trade is relatively more integrated with them (eg East Asian countries, Canada and Mexico).
On the side of imports of products from the United States, these grew 14% in the first quarter of 2021 compared to the average of 2020 and 7% compared to the average of 2019.
Meanwhile, US imports of services advanced 10% in the first quarter of the current year compared to the 2020 average and fell 14% compared to the 2019 average.
Exports
The strong recovery in the United States is expected to have continued into the first quarter of 2021, following the steep quarter-on-quarter annualized growth rate of 4.3% in the fourth quarter of 2020.
According to the European Central Bank (ECB), the streamlining of vaccinations, the support of monetary and fiscal policies, as well as the progressive reopening of the economy, have supported the activity.
Similarly, the Federal Reserve Bank of New York’s Weekly Economic Index, which tracks GDP growth using high-frequency indicators, suggests that growth dynamism has gained significant momentum. since the beginning of March.
Specifically, disposable income and consumer spending increased substantially in January, favored by the extraordinary government stimulus checks distributed within the framework of the December 2020 fiscal support package, and moderated in February.
On the side of exports of products from the United States, these increased 16% in the first quarter of 2021 compared to the 2020 average and were unchanged compared to the 2019 average.
As for US exports of services, these grew 3% in the first quarter of 2021 when compared to the 2020 average, while they fell 18% compared to the 2019 average.
