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Economic Overview: Mexico & Canada

Monday, 16 May 2011 02:40:18 (GMT+3)   |  
       

Mexico: As the US economy is showing signs of recovery, so is the Mexican growth rate. Initial numbers for Q1 confirm the trend of Q4 by showing a growth rate of above 5 percent. Not to be underestimated are the remittances from Mexican workers outside the country (almost exclusively coming from the US). In March US$2.05 billion was remitted to Mexico and it is getting closer to the pre-crisis record of US$2.64 billion of October 2008. The central bank left the benchmark interest rate unchanged at 4.5 percent since July 2009.

Canada: Canada's economy remains very stable and it is one of few G-7 countries that almost totally avoided the credit crisis that had engulfed its southern neighbor. The government proudly points to their fiscal responsibility (budget deficit of 3.4 percent of GDP) and forecasts a balanced budget by 2014. The country has become a raw material superpower of sorts. It is the world's second largest producer of nickel and the third largest producer of aluminum and natural gas. The very strong currency has not yet had any adverse impact on Canadian exports or, indeed, on the general economy. Initial numbers for Q1 show a growth rate of close to 4.0 percent.

Intra-NAFTA Steel Shipments: Intra-NAFTA steel shipments in 2010 reached a record monthly average of 1.593 million metric tons. Latest available numbers for January 2011 show a very strong start into the year, exceeding 1.6 million metric tons. Barring any unexpected recession in the US, this year should see yet another record shipping volume.

General Data

 
 

GDP latest quarter annual rate compared to previous one and year-year

Consumer Price Index

and last year

Industrial Production,

past 12 months

Un-employment

Trade Balance past 12 months

Currency to One US $ as of May 11 and last year

Mexico

+5.1%Q4

(+4.6%)

+3.4% Apr (+4.3%)

+5.2% Feb

4.6%Mar

-$ 1.7bn Mar

11.6 (12.4)

Canada

+3.3%Q4

(+3.2%)

+3.3% Mar (+1.4%)

+5.0%Feb

7.6%Apr

-$ 9.3bn Feb

0.96 (1.02)


Automotive and Steel Production

 
 

Total Units April

+ - 2010

Units Year-to-date

+ - 2010

Steel Prod Mar

000/MT

+ - 2010

Year-to-date 000/MT

+- 2010

Mexico

 190,617

  +7.5%

854,973

+19.3%

1,550 (e)

+4.8%

4,443

+6.2%

Canada

158,950 

-13.8%

744,368

+6.8%

 1,100 (e)

   -3.1%

 3,151

-1.3%


Total Intra Nafta Steel  Shipments in 2010 in Thousand Metric Tons

 
 

Ttl Intra Nafta

From US

From Mexico

From Canada

Canada

6,594

6,235

139

-

Mexico

3,888

3,470

-

418

US

8,635

-

2,555

6,080


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