Economic Overview: Mexico & Canada

Mexico: As the US economy is showing signs of recovery, so is the Mexican growth rate. Initial numbers for Q1 confirm the trend of Q4 by showing a growth rate of above 5 percent. Not to be underestimated are the remittances from Mexican workers outside the country (almost exclusively coming from the US). In March US$2.05 billion was remitted to Mexico and it is getting closer to the pre-crisis record of US$2.64 billion of October 2008. The central bank left the benchmark interest rate unchanged at 4.5 percent since July 2009.

Canada: Canada's economy remains very stable and it is one of few G-7 countries that almost totally avoided the credit crisis that had engulfed its southern neighbor. The government proudly points to their fiscal responsibility (budget deficit of 3.4 percent of GDP) and forecasts a balanced budget by 2014. The country has become a raw material superpower of sorts. It is the world's second largest producer of nickel and the third largest producer of aluminum and natural gas. The very strong currency has not yet had any adverse impact on Canadian exports or, indeed, on the general economy. Initial numbers for Q1 show a growth rate of close to 4.0 percent.

Intra-NAFTA Steel Shipments: Intra-NAFTA steel shipments in 2010 reached a record monthly average of 1.593 million metric tons. Latest available numbers for January 2011 show a very strong start into the year, exceeding 1.6 million metric tons. Barring any unexpected recession in the US, this year should see yet another record shipping volume.

General Data

Automotive and Steel Production

Total Intra Nafta Steel  Shipments in 2010 in Thousand Metric Tons