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Strong U.S. Recovery Aids Growth in Canada, Mexico

Mount Equity Group Tokyo Japan > News > Markets > Strong U.S. Recovery Aids Growth in Canada, Mexico

The U.S. economy is so strong that its neighbors, too, are getting a boost.

Businesses and consumers are buying more products from Canada and Mexico, and Americans flush with savings are going back to traveling and sending more money across the southern border, helping to bolster two countries whose economies were hit hard by Covid-19 infections and lockdowns.

Central bank officials have raised their forecasts for economic growth this year to 6% for Mexico and 6.5% in Canada, in part because of the strong U.S. rebound. The $1.9 trillion U.S. stimulus plan enacted in March is expected to increase each country’s output by between half a percentage point and a full percentage point over a 12-month period, according to the Organization for Economic Cooperation and Development.

Much of the increase is due to the strong demand for everything from Canadian lobster to Mexican-made cars that is being…

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