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5 reasons to invest in Mexico.

5 reasons to invest in Mexico.

Diversification is key to reducing long-term risk in investments. The most established emerging markets offer this type of investment and Mexico is one of these markets. According to the United Nations Conference on Trade and Development, Mexico is one of the seven most attractive countries to invest in and here we give you five reasons why.

 

In recent years, Mexico has become established as one of the markets with most growth and wealth potential. It has become a focal point for companies that want to invest and grow their business. This is why it is important to highlight some of the most important developments in Mexico, which are important to take into account when starting a project.

 

Why invest?

 

  1. Structural reforms in Mexico

 

 “Permanence and Modernization”

 

A few years ago, initiatives were introduced to establish limits on monopolies by allowing private investment. Reforms have also been adopted to evaluate and offer production contracts or participation in benefits, such as licenses, giving Mexico an advantage over other export economies. Therefore, national companies have become more competitive at a global level, accelerating the country’s growth and economic efficiency.

 

  1. Direct access to the largest markets: USA and Latin America

 

”New trade channels”

 

Mexico has one of the most favorable geographic locations; it is a gateway to the United States, Canada, Latin America and the rest of the world. The transport infrastructure is a testament to this; with 64 international airports, it is the third country with most airports in the world. It also has 63 border crossings, thousands of kilometers of rail and roadways, and it is close to one of the most important ports in the world, which permits products to be transported and facilitates business deals. All the above make it the perfect country for importing.

 

 

  1. Made in Mexico: Mexico against China

 

 “Be part of the #MadeinMexico revolution”

 

Exports in some industries have been on the rise in comparison to China. Some Asian companies have a third of the investment in manufacturing in Mexico. The reason behind this change is the improvement of productivity and labor costs. The workforce also represents a very strong work ethic. The #MadeinMexico revolution has gathered strength around the world thanks to its quality, workforce, materials, as an added value, that makes Mexican products more profitable.

 

 

  1. Growth potential

 

 “If companies don’t transform, they won’t evolve”

 

There are several reasons behind the growth potential; one of these is that Mexico’s population is one of the youngest in the world. The average age is 26 years old, which is why there is so much focus on innovation and what makes technology one of the most developed industries. The second reason is that production levels have increased in the last 20 years, as well as the constant improvement of product quality, which is always a premise in any industry. The focus on internationalization is one of the factors that makes Mexico stand out against other countries. Mexico is continually creating strategies for sustainable business.

 

 

  1. Important free trade agreements

 

 “Competitiveness in the industry”

 

The United States is the third largest trade partner of Mexico in industries like aerospace or televisions. More than 26 million pairs of footwear are exported to there and if we talk in percentages, Mexico’s trade exchanges make up 35% of the total amount in Latin America. This is thanks to 12 free trade agreements that facilitate free trade with 45 countries, such as the North American Free Trade Agreement, the Trans-Pacific Partnership, the Free Trade Agreement between Mexico and the European Union and the Pacific Alliance.

 

 

Mexico stands out globally for many reasons. It is currently undergoing structural transformation, with a focus on innovation, and the long-term growth that the country is experiencing is exponential. For all the above reasons, we believe that now is the time to invest in Mexico.

 

 

 

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