The Liontrust investment teams have chosen one chart each to show a key opportunity or challenge for the year ahead. In the first chart, Thomas Smith of the Global Equities team demonstrates the development of nearshoring in Mexico.
Mexico has been under pressure since both its own election in June and the US one in October, but one of the key drivers supporting its economic outlook – nearshoring – continues unabated.
The imminent return of Donald Trump to the White House has raised fears around tariffs, immigration and even the future of the USMCA, the trade deal he himself negotiated in his first term.
However, despite all the noise, Mexico continues to gain share of US imports and cement its position as its number one trading partner, as illustrated in the chart. Meanwhile, China’s share of US imports has collapsed.
Click here to view the chart in a larger size.
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