Mexican businesses warmed by glow of 'nearshoring' dawn

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Mexican businesses warmed by glow of 'nearshoring' dawn
France Dernières Nouvelles,France Actualités
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Savoring Success with Taste Nova Scotia Culinary Ambassador Amy Savoury | SaltWireMEXICO CITY - Mexican businesses, particularly those linked to real estate and construction, are counting on investment from so-called"nearshoring" to boost profits and economic growth, especially in industrial zones near the U.S. border.

"Many companies are already talking about this - about nearshoring and the economic benefits," said Gerardo Copca, an analyst at consultancy MetAnalisis."And I do think this will take off." It will, however, take time, he cautioned. Mexican gross fixed investment is on track to post its strongest annual growth since 1997, leaping 31.5% year-on-year in seasonally adjusted terms in August, the latest data.

Demand was particularly strong in the auto sector, the electronics industry and among machinery makers, AMPIP said. Mexico's lower labor costs are also a big draw, as are growing economic tensions between the U.S. and China.

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