Me siento increíble, me siento imparable

Welcome to the third edition of CDMX iykyk! 🪅

To learn more about the story behind this newsletter, check out this intro post. 

I’m still fine tuning this resource and I have a quick question: Which sections would you like to see added to the newsletter?

With that out of the way, let’s get right into it!

TOP NEWS 

With the Nearshoring Boom, Mexico is on the Rise

Mexico is seeing dollar signs. In the first five months of the year, foreign and multinational companies have lined up to invest over US $39 billion in the country as foreign direct investment (FDI), reports Mexico's Economy Ministry (SE).

Tell me more.

The United States, Mexico’s largest trade partner and source of FDI, accounts for 51% of the overall investment. And the majority of the money (56%) will go toward Mexico’s fastest growing industry: manufacturing. 

But things weren’t always this way. 

For decades, the US favored "offshoring" to China, relocating manufacturing operations (such as car parts, machinery, computers, etc.) to cut costs. This strategy enriched and empowered China and at times sparked controversy due to reports of child labor and sweatshops. Then like a lot of couples, the US and China had a huge fight and it ended in a messy separation.

Let’s unpack this.

Amid political disagreements, the US and China initiated a tariff-laden trade war, an unpopular move. The US decided to diversify and set its eyes on Mexico. Last year was the first year in two decades that the United States purchased more goods from Mexico than from China. Cha-ching! 

Thanks to the US-China trade squabble, a new trend called "nearshoring" is on the rise. US companies are relocating their factories from China to Mexico, benefiting from streamlined supply chains, enhanced oversight and greater influence.

Nearshoring presents a significant business opportunity, prompting an increasing number of foreign companies, including those from China, to establish operations in Mexico. They leverage the country's proximity to the United States, competitive labor costs and other favorable conditions.

What does this mean?

In a few years, Mexico has become the top US trading partner and one of its main exporters. Today, around 80% of Mexico’s exports go to the US – 90% of which are manufactured goods. No wonder Mexico’s economy soared to 12th place globally in 2023, leaving South Korea and Australia in the dust.

Mexico’s economic outlook? Brighter than a nearshoring ETF (Exchange-Traded Fund)  launched just months ago on the New York Stock Exchange.

Other Stories: 

📊 Incoming President Sheinbaum says polls show support for controversial judicial reform. 

💀 Get it straight: The Maya preferred to sacrifice male children, not female children.

🥑 US suspends Michoacán avocado inspections due to safety issues.

🏠 Youth rejoice, discounted housing in CDMX announced for ages 18-29.

🏀 NBA game confirmed in Mexico City during Day of the Dead weekend.

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CULTURE & HAPPENINGS

• Thur, Jun 20: Art/Works English Comedy Night 😹

• Fri, Jun 21: Celebrate Skate Day at Zocalo 🛹

• Sat, Jun 22: Free sonideros night at Chapu 💃🏽

• Sat, Jun 22: Language exchange & social 🤝

• Sun, Jun 23: Sunday Sunday electronic dance party 🪩 

• Tue, Jun 25: Bla Bla language exchange meetup 🗣️  

• Wed, June 26: CDMX museum night 🎨

DID YOU KNOW? 

That mariachi, banda and norteño music are cousins but not the same? They are subgenres of Mexican regional music which hails from northern Mexico. Regional Mexican music is having a ~moment~ and you’ve definitely heard it blasting in the city. More on this in next week’s newsletter.

ODE TO MEX

This section showcases my love of Mexican art, films and music. Each week, I'll offer a handpicked recommendation to deepen your connection with this magical country and its people. 

Biblioteca Vasconcelos is one of my favorite spaces in CDMX because it’s an impressive public library blending mid-century Brutalism architecture with futuristic dystopian vibes. I like to go on dates here. You'll thank me later when you wow your next date with this unique and cultural gem.

VIRAL VAULT

Welcome to our reel-y awesome corner, where memes reign supreme and giggles are guaranteed.

• Say you’re sleepy, annoyed or motivated the Mexican way

• For some of us, the pesos to the dollar rate has us seeing hearts 

• Walking into the weekend all hyped up like…

Thank you for subscribing and reading CDMX if you know, you know – it's a labor of love fueled by curiosity, and now coffee! ☕️

This project is self-funded, and if you would like to support the newsletter, you can now buy me a coffee.

That’s it!

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