But the strain of keeping up that growth is showing. Indeed, the strong peso is crimping export competitiveness at a time when demand from the U.S., Mexico's No. 1 trading partner, is cooling rapidly. The pain inflicted by the peso is most severe in industries where margins were tight to begin with. But now, with costs of materials and wages rising in dollar terms, Mexican companies risk losing U.S. customers to rivals in Central America and Asia. And more could go in the coming months.
Many exporters blame the government for the strong peso.
Yet economists see no signs that authorities are propping up the currency, as they did in years past. Instead, they say, the peso has been buoyed by a rising tide of foreign capital. Most analysts believe the peso will eventually weaken, as domestic interest rates and oil prices decline. The market consensus is that the exchange rate will move from 9.26 pesos per dollar at present to somewhere in the range of 10 to 10.50 by yearend. In the meantime, some exporters are working to offset the effects of the stronger peso.