Mexico: This year has been a difficult one for Mexico. Even though the economy started to grow impressively again in Q3, the overall contraction for 2009 will be around -7.1%, making it the worst year for Mexico's economy since 1932. Barring another financial crisis, growth for next year is expected to run around +3.5%. The annual inflation rate just falls into the central bank’s range and the record low benchmark interest rate of 4.5% was left unchanged for the fourth month in a row. Gross fixed income, a measure of spending on machinery, equipment and construction, was down -11.2% in August from last year. Future readings will reflect the resurgent economy and will likely show a positive trend. Ford will open a new diesel engine plant in the state of Chihuahua towards the end of the year.
Canada: The trade balance for the month of October was positive (+$408 million) after three consecutive months of deficits. The stronger economy in the US has a lot to do with it. In another positive development, 79,100 jobs were added in November and new home prices increased by +0.3% in October. The benchmark interest rate remains at 0.25% and will stay there until June 2010 – exactly as promised by the central bank.
General Data:
|
| GDP - latest quarter annual rate compared to previous (and year-on-year) | Consumer Price Index (and last year) | Industrial Production | Unemployment | Trade Balance past 12 months | Currency as of Dec 9 (and last year) |
| Mexico | +12.3%, Q3 (-6.2%) | +3.9%, Nov (+2.6%) | -5.7%, Sep | 5.9%, Oct | -$9.3 bn, Oct | 13.0 (13.5) |
| Canada | +0.4%, Q3 (-3.2%) | +0.1%, Oct (+2.6%) | -12.4%, Sep | 8.5%, Nov | -$1.3 bn, Sep | 1.05 (1.26) |
Automotive and Steel Production
|
| Total Units Nov | + - 2008 | Units Year-to-date | + - 2008 | Steel Prod, Oct, in 000/MT | + - 2008 | Year-to-date, in 000/MT | +- 2008 |
| Mexico | 165,844 | -4.70% | 1,383,010 | -32.3% | 1,115 (e) | -9.10% | 11,044 | -28.0% |
| Canada | 161,801 | -0.40% | 1,343,741 | -31.9% | 780 (e) | -26.6% | 7,036 | -48.3% |
Total Intra-NAFTA Steel Shipments, September 2008-August 2009, in Thousands Metric Tons
|
| Ttl Intra-NAFTA | From US | From Mexico | From Canada |
| Canada | 4,215 | 3,890 | 71 | - |
| Mexico | 2,552 | 2,202 | - | 350 |
| US | 5,493 | - | 1,774 | 3,719 |