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Upward trajectory: Market performance opens door to greater internationalisation
OBG
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The Mexican economy has been going through a period of significant development. There is a large degree of optimism both domestically and on the international scene. After being in the shadow of the BRICS countries (Brazil, Russia, India, China and South Africa) over the past few years, Mexico is back in the spotlight. Macroeconomic stability, optimism about structural reforms, and an improvement in…

Overview

Labour party: Low costs and proximity to key markets provide a solid basis for growth
OBG
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More than at any point in the last 15 years, Mexican industry is today able to compete with China as a low-cost manufacturing alternative, and with high-income markets as a viable location for outsourcing sophisticated manufacturing. If Mexico is to revitalise its economy after nearly flat growth in 2013, manufacturing, a pillar of the economy at 17% of GDP, will have to provide some of the lift. History US…

Overview

A head start: The state’s location, population and industries make it a blueprint for broader national development plans
OBG
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Despite accounting for just 1.7% of Mexico’s population and 2% of the economy, Querétaro is, in many ways, a picture of the country Mexico wants to become. Querétaro, however, has a head start over many other states. It is home to more than a dozen universities that work closely with local industry to produce engineers and other professionals with relevant training. The state government aggressively…

Overview

Demonstrated potential: A diverse population and investments in innovation lend the state much of its long-term strength
OBG
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The farthest north-west state in the country, Baja California (BC) is young, both historically and population-wise, and its dynamic economy and natural beauty have drawn a cross-section of inhabitants and businesses from Mexico and abroad. BC has five municipalities – Tijuana, Mexicali, Playas de Rosarito, Ensenada and Tecate – and a total population of over 3.3m, amounting to about 3.5% of…

Overview

Innovating for the market: Focus on research and facilitating an entrepreneurial environment
OBG
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As the government attempts to open strategic sectors of the economy to competition and attract more foreign direct investment (FDI), much is also being done to improve science and research as a means to spur innovation. Increased spending, coupled with changes in regulation, is expected to fuel the growth of start-ups and make the business environment more dynamic. Increased political support for…

Overview

Access all areas: Putting IT use at the centre of business and society is a high priority
OBG
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After several years of expansion, Mexico’s IT sector now makes up 6-7% of GDP, and this is expected to grow rapidly as constitutional reforms reshape the industry. The sector combines positive and negative forces. On one hand, its growth has been exponential, attracting foreign companies and allowing a domestic industry to emerge. On the other, asymmetric market conditions have made Mexico one…

Overview

Competitive spirit: Extensive reform is set to open up the market
OBG
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After years of underinvestment and a market structure that has stifled service penetration, Mexico’s telecoms sector is undergoing reform. Legislation to reduce the influence of dominant players is being implemented, and the authorities hope to have an impact on prices and facilitate wider access. The benefits of the legislative revamp might take time to materialise, but the potential for increased…

Overview

A new focus: Despite housing challenges, the market has been strengthened by liquidity from investment trusts
OBG
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Reeling from a crisis that left some of the country’s largest home builders in bad shape, the real estate sector is finding ways to grow in other segments. Investment coming through new property trusts is pushing the sector to rally around more profitable markets. The increase in the number of international firms has led to the development of the office segment. The same is happening in industrial…

Overview

Building for growth: Infrastructure development will help alleviate switch in homes policy
OBG
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Despite Mexico’s dynamism and the size of its economy, the country’s construction industry had a difficult year in 2013. After growing 4% in 2011 and 1.9% in 2012, the accumulated losses for the sector during the first nine months of 2013 amounted to a 4.5% reduction in construction activity. An acceleration of government spending before the end of the year allowed the sector to finish with…

Overview

Linking the country: Infrastructure expansion is set to support economic growth
OBG
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As new constitutional reforms start to take shape, Mexico is investing heavily in its transport and logistics infrastructure. Increased economic activity has put pressure on the current road and rail networks, and a bigger slice of the federal budget is therefore set to go towards improving connections by land, sea and air. Only months after his inauguration President Enrique Peña Nieto announced…