Mexico's trade with the rest of the world is set to grow by more than 10 percent this year and next and will more than double by 2026, according to a forecast by British bank HSBC.

Mexico sends more than 80 percent of its exports to the United States but trade with other countries in Latin America is on the rise, HSBC analysts said in a report on world trade growth through 2026.

"Mexico is a key market for supplying the United States," and this will put the country in a good position for trade growth over the next 15 years, Luiz Simione, HSBC's global trade head, said in an interview.

HSBC's outlook for growth in Mexico's trade by 2026 compares with its forecast for a world average increase in trade of 86 percent over the same period. Mexico is an important oil exporter and also exports manufactured goods such as textiles and cars.

"This is a result of Mexico strengthening its relationship with commercial partners, mainly the United States, but also developed and emerging countries," the report said.

HSBC's report shows the United States remaining among the world's largest trading nations through 2026, although HSBC forecasts it will take second place to China by 2016.

Still, Mexico will face hurdles as its trade grows. One challenge will be to establish a stronger commercial presence outside of North America, the report said.

Autos and electronics are expected to be key areas that will help Mexico increase trade with other rapidly growing emerging markets, according to HSBC.

As Mexico expands its supply chain for these sectors, its trade with countries such as Brazil and China will grow annually by 12.5 percent and 18.8 percent, respectively, HSBC said in the report, which was published as a guide to companies looking to plan long-term investments.

Mexico ended 2011 with record car exports of 2.14 million. Car exports to the United States grew by 6.7 percent in 2011, while exports to other regions such as Europe rose by 24 percent and Latin America exports rose 56 percent, according to industry figures.

Mexico posted its second consecutive trade surplus in December, helped by a modest uptick in manufacturing exports.

The country's economy is still coming back from a deep recession in 2009. Economic growth is expected to be between 3 and 4 percent in the next two years. (Reuters)