While the U.S. economy is seeing significant growth, economies in neighboring countries, Canada and Mexico, are doing also well. In Canada, rising exports and consumer spending have translated into better growth. This year, their GDP will grow by about 2.25 percent with a similar boost predicted for 2015.
Meanwhile to our south, an energy boom is propelling the Mexican economy. The Mexican government's recent decision to allow foreign and domestic companies to explore for and refine oil will prompt Pemex, Mexico's state-owned enterprise, to become more competitive, boosting growth. Also, home building in the country is recuperating, and manufacturing is on the rise as the U.S. and Canadian consumer demand begins to rebound.
This is promising news for U.S. businesses overall since Mexico and Canada are amongst the U.S.' top foreign customers, accounting for $944-billion-plus in exports.
In contrast, China's economic growth is likely to slow in the coming years. Gains will drop to around 6 percent by 2016 from 7 percent in 2015 and 7.3 percent this year. This is a drastic change compared to the double-digit growth China has experienced in the last decade. With bad loans on the rise, the supply of credit from non-traditional lenders such as trust companies has been more limited. Also, falling real estate prices are taking a toll n construction activity and sales, weakening the type of business investments that helped stimulate past growth.
Much of these changes, however, seem to suit Beijing. Officials there think that moderate growth is preferable to additional, riskier, credit-fueled expansion. The government also wants home and rental prices to decrease in order to accommodate average families.
These economic changes pose new opportunities for US companies doing business internationally. The changes are gradual but very promising, and as these developments occur, we as a nation should do everything we can to ensure that the U.S. continue to be a powerful and influential international player. This, as well as the tremendous human capital, that we have will give us the competitive edge for further generations to come. I am bullish about us in the United States and its close neighbors.