Bolstered by its substantial natural resources, Mexico’s gas production and exports are expected to rise in the longer term as a result of new investment triggered by the government’s energy liberalisation policies, and a general recovery of hydrocarbons prices from their low point in 2015. According to estimates by BP “Statistical Review of World Energy 2015”, Mexico had 12.3trn cu feet of…
Mexico is the world’s leading beer exporter, producing 86m hectolitres (hl) per year, worth $20bn. The country has topped the list of beer exporters for the past six years, thanks to surging international demand for brands such as Corona Extra, Modelo, Sol and Tecate, with exports growing 9% to reach around $2.4bn in 2014, according to the National Statistics Institute. Tequila exports, meanwhile,…
With installed capacity of 2600 MW in wind and 55 MW in solar power plants, Mexico generates around 10% of its energy with non-hydro renewables, but it aims to produce 35% of its energy from clean sources by 2024. Jose Pablo Fernandez, director-general at Grupo Dragon, told OBG, “Mexico’s 2024 goal is ambitious but possible. It has 18-19% clean energy production, and the aim is to raise this by…
Since the early days of NAFTA, the Mexican manufacturing sector has evolved extensively. While the country once positioned itself as a destination for basic cross-border assembly operations for electronics and textiles, it is now developing a highly specialised manufacturing market. In the fourth quarter of 2014, manufacturing represented 17.5% of GDP, according to the National Institute of Statistics…
The post-North American Free Trade Agreement ( NAFTA) manufacturing boom has been particularly attractive for the Mexican automotive industry. According to Eduardo Solis Sánchez, president of the Mexican Automotive Industry Association, Mexico will see a fifth consecutive year of increased motor vehicle output. The auto industry now brings in net earnings of some $50bn a year, more than the oil and…
A MXN169bn ($11.4bn) project to build an international airport in Mexico City is ready for take off, with the government expecting ground to be broken before the end of 2015. The airport is the most significant in a series of large-scale projects designed to tackle shortcomings in the country’s transport and logistics system, signalling the government’s commitment to continuing with major infrastructure…
Since its inception in 2012, Mexico’s public-private partnership (PPP) law has opened the door to private capital assuming a larger role in the development of the country’s infrastructure. Use of this option is becoming increasingly critical, with the federal government experiencing a reduction in its budgetary capacity to invest in large-scale public works projects. This has led to a call from…
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)…
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…
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…
