With a rich mining history, an unrivalled location both for exporters and companies serving the domestic market, and escaping relatively unscathed from the drug-trafficking violence that afflicts other parts of Mexico, Hidalgo has the tools to flourish, despite being one of the less developed states in the country. Hidalgo’s current government has looked to accelerate efforts to attract investment…
Posting a GDP growth rate of 3.9% in the first half of 2017, Nuevo León outpaced the national economy, which grew at a rate of 2.5% over the same period. Despite a challenging year of slow growth in 2016, the manufacturing sector remained the main driver of the state’s economy in 2017. Though the US continues to be Nuevo León’s largest trading partner, the state has pushed to diversify its economy…
Economic expansion in the north-central state of Guanajuato outpaced that of the nation as a whole in 2017, registering GDP growth of 4.5%, compared with Mexico’s rate of 2.1%. In order to ensure long-term growth, the state is diversifying its economy by boosting the production of metals, food products and leather goods, while also pursuing innovation, partly by strengthening ties between local industrial…
While renegotiations of the North American Free Trade Alliance (NAFTA) have led to an environment of uncertainty for Mexican industry, the automotive sector remains solid and on track for further development driven by rising vehicle production, local sales and export demand. Mexico is home to 24 carmakers, with manufacturing facilities in 24 states, producing cars, light and heavy trucks and tractors,…
Mexico’s telecoms sector is the second largest in Latin America after Brazil in terms of subscriber numbers, contributing approximately 2.4% to GDP in the third quarter of 2017. Penetration of products and services, such as mobile phones, broadband internet and pay-TV, are also on the rise, having ranked well below the global average until 2015. The rollout of a 5G network demonstrates Mexico’s…
Mexico’s banking industry enjoys high capital adequacy ratios and is benefitting from robust profit margins. While some stakeholders have pointed to the sector’s conservative approach as a reason for the slow progress in increasing penetration levels, the sector is in fact expanding financial services to a broader share of the population. Relative to the size of the Mexican economy, the country’s…
Mexico’s transport sector is undergoing major expansion, providing increased investment opportunities. Among the ongoing projects is a $13bn international airport in Mexico City, which was originally slated for completion in 2020 but is likely to be delayed until 2023. Work is also under way on a new urban metro system in the capital, and upgrades to the railway and road system. In addition, freight…
Traditionally a barometer of a Mexico’s economic health, the construction sector saw investment slow in 2017 as a result of a dip in public spending on infrastructure works and uncertainty among private investors over the possible outcome of the renegotiation of the North America Free Trade Agreement. This could further push up the already rising costs of materials brought by the February 2018 hike…
Performance in Mexican industry is heavily dependent on the particular segment in question and its current economic position. The automotive and aeronautics manufacturing sectors, concentrated mostly in the Bajío region of Mexico in the states of Querétaro and Guanajuato, are driving demand for inputs like light-weight polymers, while strong growth in agro-industry across different regions of Mexico…
While renewed interest in promoting research and development has meant Mexico is performing well on global indices, lower budgets in 2017 and 2018 mean the government will be looking to continue incentivising private investment, while encouraging universities to maintain their work to advance the sector. While Mexico has a strong background in innovation, fostering new research and auctioning new ideas…
