By Ivan Castano
Investor Report Mexico: Auto focus
Mexico’s manufacturing sector is poised for a significant boost – provided the US economy doesn’t falter
Mexico's manufacturing output should grow 3.5%-4% in 2012,
despite concerns that slowing US demand could hit production in
the second half, according to leading economists.
The fast-growing automotive, electronics and aerospace
industries are expected to fuel the hike, they say, adding that
foreign direct investment is seen matching or exceeding last
Even though the US ISM manufacturing index fell sharply to
49.7 points in June, the decline is unlikely to trigger a sharp
drop in the IMEF Mexican manufacturing.
"We have seen strong demand from the US this year and this
should continue through the remainder of the year," says Juan
Lorenzo Maldonado, an economist at Roubini Global Economics.
"We don't expect a sharp drop in Mexican manufacturing in the
But the risks of a slump could increase in 2013 amid signs
that US and European economies...
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