The GDP of Mexico will grow by 2.5% this year,according to the OECD

This forecast remains in line with the projection the same entity had in October and falls within the lower end of the range estimated by the Ministry of Finance of Mexico for this year, which is between 2.5 and 3.5 percent.

According to the organization, next year will see continued moderation in economic activity, impacted by the expected performance of the United States, resulting in GDP growth of 2 percent.

During the biennial report presentation for Mexico, the Secretary-General of the OECD, Mathias Cormann, explained that if the country manages to make the environment more competitive for productive investments and promotes the integration of SMEs and rural areas into value chains, the opportunity presented by multinational corporations intending to move their operations to North America can be multiplied.

Nearshoring in Mexico holds significant importance in the context of the US-China decoupling for several reasons. Firstly, Mexico’s geographical proximity to the United States provides a strategic advantage for companies seeking to diversify their supply chains away from China. With shorter transportation times and reduced logistical costs, nearshoring to Mexico allows businesses to maintain closer oversight of their production processes while remaining responsive to shifts in demand within the lucrative US market.

The US-China trade tensions have underscored the risks associated with overreliance on a single manufacturing hub.

As companies reassess their supply chain strategies to mitigate these risks, Mexico emerges as an attractive alternative manufacturing destination. Mexico’s established manufacturing infrastructure, skilled labor force, and favorable trade agreements, such as the USMCA, offer assurances of stability and regulatory compliance.

Nearshoring in Mexico represents not only a pragmatic response to the US-China decoupling but also a strategic opportunity for companies to enhance their competitiveness and adaptability in the face of evolving market dynamics.