Strong Track Record of Earnings and Dividend Growth slide image

Strong Track Record of Earnings and Dividend Growth

Mexico Diverse economy with a strong balance sheet • The Mexican economy reflects a solid mix of commodities, goods production, and services Trade remains dominated by the U.S., but Mexico's diversification agenda is underpinned by 13 free-trade agreements with 47 countries that account for 40% of global GDP Despite NAFTA-related concerns, investment rebounded in 2018, which points to the resilience of the economy to trade uncertainty Contributions to Mexican GDP Growth 16.0% Finance, Insurance, & Real Estate 16.3% Other 3.2% Natural Resources 6.5% Transportation & Warehousing 5.8% Health & Education MEXICAN GDP BY INDUSTRY (Q4 2018) 1.9% Professional, 3.8% Scientific, & Technical Public Services Administration Top 5 Trading Partners 17.7% Wholesale & Retail Trade 15.8% Manufacturing 6.1% Mining and Oil & Gas Extraction 6.8% Construction 5 y/y % change 4 3 2 1 0 -1 -2 -3 Other* Net Exports Inventories Investment Government Japan 3% Canada 4% Others 20% Germany 3% United States 59% -4 Consumption -5 Real GDP China 11% 16 *Statistical discrepancy, subject to revision. 17 18 Sources: Scotiabank Economics, Haver Analytics. Scotiabank® 34
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