Analysis

From lab to market: A rising number of private companies are reaping the benefits of investing in R&D activities
OBG
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As Mexico works to improve its research capabilities and infrastructure, a big contribution is coming from international investors. Industrial and technological firms have been establishing research facilities in the country, bringing fresh investment into the sector and exposing Mexican human resources to international know-how. The increase in the number of foreign research and development (R&D)…

Analysis

Raising the ceiling: New government plans set to improve access to quality housing
OBG
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A growing population and urban development in key cities across the country has put housing development at the forefront of government policy. But the 2013 housing crisis, which saw the collapse of three of the biggest homebuilders in Mexico, has led the government to change the focus of this policy. A rethink of subsidy allocation, coupled with tax breaks and other incentives, is helping to revive…

Analysis

Trusting the market: Real estate investment trusts continue to attract investment to non-residential segments
OBG
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Mexico’s real estate sector has been witnessing the growth and impact of real estate investment trusts (REITs), known locally as Fideicomiso de Infraestructura y Bienes Raíces (FIBRAs). These are vehicles for real estate portfolio management which rely on the issuing of real estate certificates to investors. As of early 2015, nine different REITs were active in the Mexican market, investing in and…

Analysis

After a piece of the pie: States eye economic benefits of expanding the MICE segment
OBG
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With Mexico regaining its spot among the world’s top 10 tourist destinations in 2014, it is no surprise that the meetings, incentives, conferences and exhibitions (MICE) segment is becoming increasingly dynamic. Recognising the segment’s importance, particularly for states that have traditionally been primarily sun and sand destinations, state authorities are now developing strategies to raise…

Analysis

Changing landscape: Introduction of public investment vehicles helping to shape hotel market dynamics
OBG
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The Mexican hotel industry has been in recovery mode since 2009, after feeling the effects of the economic downturn from the 2008 financial crisis and the breakout of the H1N1 virus in 2009. According to consultancy firm Jones Lang LaSalle (JLL), the industry posted average annual growth of 4.7% on occupancy rates and average daily rates in the period from 2009 to 2014, while revenue per available…

Analysis

A maturing market: Pharmaceuticals companies adjust business strategies to changing market dynamics
OBG
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The continued increase in market share of low-cost generics, coupled with the consolidation of purchases by the institutional market led to slower revenue growth in pharmaceuticals for human use in 2014. Nonetheless, the strengthening of Mexico’s regulatory framework is opening up new opportunities. Market Fundamentals Generating annual revenues of around $13bn, Mexico’s pharmaceuticals industry…

Analysis

Dynamic efficiencies: Government establishing a network of agro-industrial clusters
OBG
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In an ongoing effort to increase the competitiveness of Mexico’s agriculture sector, the government of President Enrique Peña Nieto is working to establish a national network of agroparks – agro-industrial clusters that concentrate various parts of the production value chain, from storage to processing, value addition activities and logistics services. The concept, which is part of the government’s…

Overview

The unique strengths of Mexico
OBG
plus

In addition to being the second-largest economy and second-most-populous country in Latin America, Mexico is geographically and culturally diverse. The country boasts more than 11,100 km of coastline and diverse terrain ranging from desert to mountains to rainforests, as well as a rich cultural heritage that includes numerous well-preserved ancient indigenous cities. Mexico is also a significant producer…

Overview

Mexico reforms boost international confidence
OBG
plus

Sweeping reforms in energy, telecoms and education, among other sectors, are being implemented in Mexico in an effort to boost the country’s economy and attract investment. Significant structural changes were achieved in the past year with the aim of increasing economic competition and efficiency, though the benefits have yet to fully materialise. In its first two years in power, the government of…

Overview

Mexico's economy is undergoing large-scale reform
OBG
plus

Depending on the measurement used, Mexico is either the 13th- or 14th-largest economy in the world, and it also among the most liberalised economies in Latin America. Over the 2000-10 period, the country has seen a rapid expansion of the middle class, with 17% of the population, or 20m people, achieving this status. By size of population and GDP – 122.3m and $1.26trn, respectively – Mexico is the…