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Highlighting the dynamic economy of Texas, northern Louisiana and southern New Mexico

Southwest Economy

Jesus Cañas, Luis Torres and Diego Morales-Burnett

Mexican economic performance is likely to slow in 2024, with stubborn inflation, rising labor costs and a strong peso posing downside risks. Conversely, nearshoring and a larger-than-expected fiscal impact could bolster the Mexican outlook.

Dallas Fed economists Sewon Hur and Pia Orrenius discuss how improving productivity could propel Mexico beyond the ranks of middle-income nations.

Garrett Golding, Emily Perlmeter and Prithvi Kalkunte

Thirty years after Texas’ last nuclear plant opened, new nuclear generation could provide needed power without planet-warming greenhouse gas emissions.

Texas is poised to lead in new advanced technologies, notably artificial intelligence (AI) and semiconductor manufacturing.

Industrial policy reform, nearshoring and a deeper Mexico–U.S. partnership could provide tailwinds for Mexican economic growth. Whether Mexico can harness the full potential of such transformative change is less clear.

Alan D. Viard, senior fellow emeritus at the American Enterprise Institute and former senior economist at the Federal Reserve Bank of Dallas, discusses federal entitlements and tax policy challenges during an era of rising deficits.

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Southwest Economy

Southwest Economy is published by the Federal Reserve Bank of Dallas. The views expressed are those of the authors and should not be attributed to the Federal Reserve Bank of Dallas or the Federal Reserve System.

Articles may be reprinted on the condition that the source is credited to the Federal Reserve Bank of Dallas.