GDP could rise by 1.5 points if domestic content in exports increases by 10%: Edgar Amador
Mexico's economy could see a permanent 1.5-point increase in potential GDP if domestic content in exports rises by an additional 10%, according to Finance Secretary Edgar Amador.
Edgar Amador, Mexico's Finance Secretary, has stated that the country's economy could experience a significant boost in its potential GDP by 1.5 percentage points if there is a 10% increase in the local content of exports. Currently, about 51 cents of every dollar exported is produced by the Mexican local industry, in stark contrast to 83 cents in Southeast Asian countries. This indicates a substantial gap that Mexico aims to close to improve its economic position in the global market.
During a presentation of the Citizen Projects Program under the Inspiring Innovation Mexico initiative, Amador emphasized the importance of integrating higher levels of national production to enhance the country's GDP potential. He argued that if Mexico could increase the local content in each peso of its exports by an additional 10 cents, it could lead to a notable increase in the internal product, enhancing economic growth sustainably. This strategic initiative is part of the broader vision of Plan Mexico aimed at fostering national production driven by innovation and added value.
Amador's statements reflect ongoing efforts by the Mexican government to stimulate the economy by promoting local industries and increasing self-sufficiency. With global supply chains facing disruptions, boosting domestic production not only presents a pathway to stronger GDP growth but also fortifies Mexico's economic resilience against future fluctuations in international markets. The implications of such policies could lead to a more competitive economy in the long term, benefiting the local workforce and reducing dependency on foreign-produced goods.