Industry & Mining
From The Report: Mexico 2017
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In 2016 the Mexican manufacturing sector achieved annual growth of 1.3%, as many other sectors of the economy experienced a slowdown. Accounting for 16.8% of GDP, the manufacturing sector is the largest contributor to the national economy. Given the sector’s economic weight, the November 2016 election of US President Donald Trump has created a shadow of uncertainty over the Mexican economy. However, such is the dependence of US industry on Mexican imports that drastic measures look unlikely. Whether through a refocus on the domestic market or a diversification of export destinations, Mexican industry has preserved the fundamentals on which it can continue to prosper. Additionally, Mexico has long been a global presence in the mining industry, but since 2012 falling commodity prices, coupled with increased royalty payments, have led to stagnation of both production and investment. In early 2017, however, the recovery of metals prices saw a rise in merger and acquisitions in the global mining industry, and a growing belief that a new bull market could be on the horizon. With huge exploration potential, Mexican mining could soon be back after a hiatus. This chapter includes an interview with Alexander W Wehr, President and CEO, BMW Mexico, Latin America and the Caribbean.