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

Southwest Economy

Artificial intelligence, electric cars and power-hungry manufacturing are combining to boost electricity demand in Texas and nationwide. Dallas Fed economists Kunal Patel and Pia Orrenius examine what it will take to ensure that the lights stay on, and burgeoning user demand is met.

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.

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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.