(Bloomberg) -- Shipments of boats, vehicles and computer parts are leading Mexico’s export boom, showing growing US demand for industrial products from its southern neighbor.
The export of boats produced in Mexico increased 266% in September compared to a year ago, the fastest growing item among Mexican exports worth above $100 million, according to central bank data released last week. Computer parts and passenger cars topped the list of most valuable export items in the month, with about $4.7 billion each, according to the data.
Shipments from Latin America’s second-biggest economy rose to a record $52.3 billion in September, up 25% from the year before, according to the national statistics institute. More than 80% of those go to the US, by far Mexico’s main trading partner.
The export boom is “explained partly by an unsatisfied demand in the United States,” said Rodolfo Navarrete, director of analysis at Vector Casa de Bolsa SA in Mexico City.
Among main categories, the exports of train wagons jumped 174% in annual terms while medicines for retail sales grew 60%, the central bank data shows. Vehicles and car parts grew 44% and malt beer 27%, the same increase as crude oil.
Mexico’s growing exports come at a time the government is considering ways to attract investments to supply the US market from company that otherwise would settle in Asian markets, a trend known as nearshoring. Mexican Economy Minister Raquel Buenrostro earlier this month said over 400 companies were looking to move operations from Asia to the Latin American nation.
If Mexico fully capitalizes on the trend, its exports to the US could surge by around 38% in the coming years, according to a Barclays Plc report published Wednesday.
Read More: Mexico Nearshoring ‘Already Happening,’ Barclays Report Finds
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