Mexico Ranked Seventh in Logistic OpportunitiesBy Jorge Ramos Zwanziger | Thu, 07/29/2021 - 12:19
Mexico ranked seventh in the logistics market and opportunities in Agility’s ‘Emerging Market Logistics Index 2021.’ The study addresses both the logistics challenges and opportunities that arise in the wake of the COVID-19 pandemic among emerging economies.
According to Agility, logistics industry executives do not foresee a full global recovery until 2022 despite the rebound in Asia-Pacific markets like China and Vietnam. “By a two-to-one ratio, companies are choosing to build a supply chain resilience by speeding their adoption of digital technology and moving more of their business online versus moving production to markets that they feel are somehow safer,” explained Chris Price, CEO of Agility Global Integrated Logistics, about the findings in the report.
Mexico’s performance shows that even with the millions of COVID-19 cases, strong fundamentals can still generate growth, according to Agility. The country showed great economic turmoil during 2020. “Analysts point to the President Andrés Manuel López Obrador’s decision to favor budgetary discipline and austerity over stimulus packages as one of the causes for the economic turmoil,” reads Agility’s Index. However, things are looking better thanks to significant advantages that will allow the country to recover. “Its close ties to the US remain a primary source of growth, and as the US saw its economy weather the most severe pandemic-related disruptions, Mexico saw its export volume rise,” explains Agility.
Agility also notes other opportunities the country has, particularly due to the USMCA and highlights that successful implementation of the agreement is necessary because a failure would threaten the economy. “Mexico would benefit indirectly if the incoming Biden administration injects fresh stimulus into the economy of the US, Mexico’s biggest trading partner. Mexico is also best positioned to benefit from decisions by multinationals to move production out of Asia in order to be closer to the US market. The country’s central bank chief predicts Mexico’s GDP will grow 5.3 percent in 2021.”