South of the Border Imports Boom

Driven by demand for boats, vehicles, vehicle parts, computer parts, and oil, Mexican imports to the United States rose 19.5% year-over-year in 2022 to reach $479.6 billion according to Mexico’s ​​National Institute of Statistics, Geography, and Informatics.

Some segments, such as motor vehicle parts, are returning to pre-pandemic levels. Additionally, data from project44 shows that TEU vessel capacity sent to East Coast ports rose 98% in six months—from 97,674 TEUs in April 2022 to 193,420 TEUs in October 2022.

This same period saw imports to Mexico from the United States rise by 22.8%. Mexico, home to assembly plants for GM, Toyota, BMW, Honda, and others, is the top importer of motor vehicle parts made in the United States. Auto parts alone accounted for more than $30 billion of imports.

Trade between the countries might begin to cool in 2023 due to weakened economies, warns the Banorte financial group of Mexico. Despite these warnings, the World Bank expects the Mexican economy to grow by 2.1% in 2023.