Results of Mexico Economy 2022
On December 18th, the English magazine "The Economist" published the article 2022's Unlikely Economic Winners, in which the economies of the 38 countries members of the OECD were compared using five indicators: GPD, inflation, inflation breadth, stock market performance, and government debt. Mexico was rated the sixth-best-performing economy in 2022 out of the 38 countries. The Mexican government has tried to keep inflation and debt down, but the GDP growth is still behind compared to before COVID-19.
An essential factor in the GDP Growth has been the significant investment coming into the country due to the US-China war, which has resulted in the nearshoring of manufacturing from China to Mexico.
The actual government is fiscally conservative and avoids borrowing on the financial market.
Nevertheless, Mexico has unsolved issues that affect the economy. The increased violence of the drug cartels in some areas of Mexico affected businesses, families, and communities.
If the USMCA dispute regarding Mexico Energy reform promoted by the current Mexico administration is won by the US and Canada, it will affect Mexico's exports by increasing tariffs on essential export products.
Mexico's GDP growth for 2023 will depend on the US economy's performance and the impact on interest rates.