Mexico: The country is limping back from one of the deepest contractions seen anywhere in the world last year. The Mexican economy is recovering but at a slower than anticipated speed. The central bank has left the benchmark interest rate unchanged at 4.5 percent for the eleventh consecutive month. Inflationary tendencies seem to be under control and the rate will not exceed 5.5 percent this year. Automotive production doubled in June with the majority of vehicles having been exported. However, the Mexican government is keeping a nervous eye on the economic conditions in the US - the destination of 80 percent of its exports. Recent talks of the "Great Stall" in the US are causing heart palpitations in government circles around Mexico City.
Canada: The economy mirrors more or less developments of the other two NAFTA (North American Free Trade Agreement) members. Recovery is taking place but it is slow. With the wobbly US economy, Canada's slow recovery is not a surprise. GDP growth for the month of May was a mere 0.1 percent. Moreover, the recent BP oil spill in the Gulf of Mexico has cast an unflattering light on Canada's own important oil industry, with recent studies showing that no oil extraction method is more harmful to the environment than the oil sand extraction in Alberta, Canada. It has been branded the "most destructive project on Earth". This new exposure will doubtlessly compel the Canadian government to act on its promises given in Copenhagen last year to clean up this industry. But as a result, production costs will likely increase and the output could decline.
Intra Nafta Steel Shipments: Latest available figures reflect April of this year. The steel shipping volume among the NAFTA partners has been increasing steadily. March and April were especially strong. In April, a record 15,443 mt of steel products were shipped from Mexico to Canada.
General DataGDP latest quarter annual rate compared to previous one and year-year | Consumer Price Index and last year | Industrial Production | Unemployment | Trade Balance past 12 months | Currency as of Aug 04 and last year | |
-1.4%Q1 (+4.3%) | +3.7% Jun (+5.7%) | +8.4% May | 5.1% June | -$ 2.4 bn Jun | 12.7 (13.0) | |
+6.1% Q1 (+2.2%) | +1.0% Jun (-0.3%) | +7.2% May | 7.9% June | -$ 2.5 bn May | 1.04 (1.07) |
Automotive and Steel Production
Total Units June | +/- 2009 | Units Year-to-date | +/- 2009 | Steel Prod Jun 000/MT | +/- 2009 | Year-to-date 000/MT | +/- 2009 | |
218,863 | +100.3% | 1,155,867 | +78.9% | 1,435 (e) | +17.6% | 8,455 | +29.2% | |
202,838 | +86.4% | 1,085,160 | +78.1% | 1,125 (e) | +61.3% | 6,539 | +56.7% |
Total Intra Nafta Steel Shipments Last 12 months May 2009-April 2010, in thousand metric tons
Ttl Intra Nafta | From US | From Mexico | From Canada | |
5,599 | 5,469 | 60 | - | |
3,446 | 3,132 | - | 313 | |
6,942 | - | 1,932 | 5,009 |