Mexico’s Ports Report Positive Results Despite Logistics Problems
The Mexican Navy (SEMAR) reported a 5.8% growth in twenty-foot equivalent unit (TEU) mobilization in 2022, when compared to previous year. Mexican ports transported 8 million TEUs, representing 20.46% of the country’s total cargo.
The total amount of cargo that arrived at Mexican ports did not change significantly. Movement of oil and derivatives amounted to 37.6%, while mineral bulks made up 21.8% of the total. Agricultural bulks contributed 5.85%, and loose general cargo accounted for 10.55% of the total. These results indicate a positive trend in the movement of goods through Mexican ports.
Mexico Faces Logistics Challenges as US Economy Slows Down
Mexico’s logistics industry is facing new challenges as the US economy starts to slow down. Earlier this year, the World Bank slashed its 2023 global growth forecasts as global economic conditions worsened, putting several countries at risk of recession, as previously reported by MBN. The World Bank estimated that the US grew 1.9% in 2022, reads the Global Economic Prospects report.
Mexico’s Minister of Finance Rogelio Ramírez de la O said that an economic slowdown in the US is unlikely to affect Mexico until 4Q23, which would allow the Latin American country’s GDP to maintain its steady growth rate, reports T21.
According to the World Bank, Mexico’s GDP grew 2.6% in 2022. However, this trend is expected to halt at less than 1% growth in this year, depending on the exports to the US. The Bank of Mexico (Banxico) has been looking for ways to reduce the impact the US Federal Reserve (Fed) on Mexico’s economy. The Fed has steadily increased interest rates in an attempt to diminish the potential of an economic recession. Banxico is expected to gradually disengage from the Fed’s interest rate hikes, says UBS, as reported by MBN.
Banxico's decision to adopt a more independent monetary policy could have important implications for the country's economy, as it could provide greater stability and support growth. It could also provide a more attractive investment environment for domestic and international investors.
“We expect Banxico to continue limiting the pace of hikes in the target rate, taking it to a terminal level close to 11.00% in 1Q23, and we do not rule out a subsequent slight deviation from the Fed’s actions,” says Alejandro Saldaña, Chief Economist, Grupo Financiero Bx+.