By Israel Molina
Texas Leads Company Relocations
Texas Economic Development & Tourism (TED) published a study revealing that the state has had the fastest growth in business relocations. In 2022, according to the report, more than 30 different companies moved their operations to the Lone Star state. Most of the companies that relocated came from California, and the preferred destinations in Texas were Austin, Dallas, and Houston. According to TED, the state of Texas leads the nation in job creation and population growth over the past 10 years. Texas is the 10th largest world economy and home to 50 Fortune 500 company headquarters. The state offers a business-friendly climate with no corporate taxes or personal income taxes, a highly-skilled workforce, easy access to global services, markets, robust infrastructure, and predictable regulations. To learn about the companies that have relocated to Texas, visit the following link: https://bit.ly/3Ei6QuR
Lithium Reserves in Mexico
Currently Mexico is not exploiting its lithium deposits, however, three lithium deposits are in the exploration stage in the states of Baja California, San Luis Potosí, Zacatecas, and Sonora. In addition to these, there are 17 other locations in Mexico with sources of lithium according to data from the Mexican Geological Service. Some, like Puebla and Oaxaca, have a good number of localities that would be affected if they decided to extract the mineral.
Gross Domestic Product and Nearshoring
Mexico began 2023 with good economic forecasts and optimism generated by nearshoring. But on further analysis, it is unknown how much the relocation of companies and production processes will contribute to the growth of the Gross Domestic Product (GDP). With relocation, the expectation is favorable for Foreign Direct Investment (FDI) and regional trade under the Treaty between Mexico, the United States, and Canada (T-MEC). But there is an energy dispute pending resolution. The major question still remains: “What about economic growth?” Analysts from UBS, Bank of America (BofA), and the Mexican government are not clear about how much growth will be generated in the GDP with the relocation of business chains from Asia to Mexico. In their General Economic Policy Criteria (CGPE) 2023, the Treasury estimates that the economy will grow at 3% in 2023. This will be mainly supported by the labor market, a social protection network, public investment in infrastructure, private consumption, remittances, FDI, social programs, and labor reforms. Source: CANAINTEX
