Our Market

Below provides a profile of the Latin America regional market overall, and interesting facts and information about issues important to both México and foreign executives working in Mexico.

Mexico has a 758,449 square miles surface which, added to the sea surface over which it has use and natural resources exploitation rights (called Exclusive Economic Zone), reaches a total surface of 1,986,223 square miles, and ranks Mexico as one of the largest countries in the world. Mexico, together with Canada and the United States, is part of North America. They constitute the World´s largest free trade area: more than 420 million inhabitants that produce goods and services for a total value exceeding 13 trillion dollars. Mexico's southern neighbors and main gateways to Central and South America are Guatemala and Belize. Together with all the Central and South American countries, Mexico constitutes Latin America, an area with which we have close and growing cultural and business relations. Mexico's border with the United States is 1,979 miles long, and it has 53 border points that facilitate communication for approximately 63 million people who live in both countries' border states.

In the last decade, Mexico has implemented public policies that have helped to consolidate its macroeconomic stability: in 2008, the GDP grew at a 1.3% annual rate, while the inflation rate grew at a 6.5% rate, the lowest among Latin America's main economies.

Based on forecasts made by international firms, such as Goldman Sachs, in 2050, Mexico will be one of the world's five largest economies.

Some 25 years ago, Mexico set out to achieve a greater economic openness focused onfreeing international trade and attracting investment flows. This policy is supported by an aggressive agenda to privatize government companies.

During this period, Mexico made many changes to its Foreign Investment Law and signed free trade agreements with the world’s leading economies. The country also reached a consistent, solid and stable macroeconomic framework that has brought certainty to investment.

Today, Mexico offers an attractive business environment, legal certainty, one of the world’s largest free trade agreement networks, as well as highly developed economic sectors that offer very competitive costs. Furthermore, the country is developing its infrastructure to turn into a world-class logistics platform and it is working on deregulation to simplify business operations even more.

This material outlines Mexico’s strengths and competitive advantages that make it an excellent choice for businesses to establish their operations.

Mexico General Information

31 States and 1 Federal District
Capital City: Mexico City (20 million people) (Top ten worldwide)
Population: 106 million people approx. (48.3% men – 51.7% women)
It is bordered by the United States, Guatemala and Belize

Employment data:

Economically Active Population:
58.6% = 61,993,350 people

Unemployment Rate:
5.44% = 3,372,433 people

Minimum Wage:
55.7 pesos = 4.49 USD daily

Mexico Economic Information

GDP:
1 trillion usd (agriculture 4%/ industrial sector 30%/ Services 66%)

GDP per Capita:
9,600 usd/year

Real GDP Growth Rate:
5%

Current Account Balance $13 Billion USD

Inlfation:

4%

Interest Rate:
4.5% short term

International Reserves:
$108 Billion USD

Foreign Public Debt:
$98 Billion USD

Deficit Fiscal Balance:
-2.5% of GDP

Mexico  is one of the countries with most commercial agreements (More than 20)

Petroleum:

40 billion in sales a year (PEMEX)

Manufacturing Exports:
240 billion usd

Foreign direct investment:
18 billion ytd

Import Sources:

• USA 74.8%
• Germany 4%
• Japan 4%

Export Destinations:

• USA 80% (percentage has been declining)
• Canada 2%

Immigrants Remittances:
22 billion usd ytd

Tourism:
$12.6 billion usd ytd

Top Touristic Destinations:
Cancun, Los Cabos, Oaxaca, Chichen Itzá