Economic overview: Mexico & Canada

Mexico: The economy surprised on the upside in Q3, exhibiting unexpected strength but analysts warned not to indulge in too much optimism--the strong growth was largely attributed to the agricultural and service sectors. Skepticism remains regarding growth for next year. Mexico's economy relies heavily on a strong US market and this is by no means a given. Expected growth for 2012 is will likely hover around 3 percent compared to 3.4 percent for this year. Inflation, for now, has stayed in check but there is concern here as well. The Mexican Peso has lost about 16 percent in value to the US dollar since this past summer and central bank officials are keeping their eyes on the inflation rate which could easily rise as the peso falls.

Canada: The only AAA-rated NAFTA country kept a steady pace of growth and fiscal responsibility in 2011. Right now, Canada's growth is out-performing any other G-7 country (US, Japan, UK, Germany, France and Italy in addition to Canada). Final numbers for 2011 and forecasts for 2012 will show a steady 2.4 percent growth. The budget deficit is a manageable C$31 billion or 4.3 percent of GDP. By comparison, the budget deficit in the US has reached a lofty 9.6 percent of GDP. The Canadian "loonie" has strengthened recently and is expected to be at par with the US dollar for most of next year. Some investors even consider it a "safe haven currency." Canada still is the world's second largest producer of uranium (behind Kazakhstan), the third largest producer of natural gas and the third largest exporter of wheat.

General Data:

Automotive and Steel Production: