Mexico – country with many opportunities
Mexico is not just the country of Tequila, Sombreros and Tacos, but enjoys the reputation of having a strong manufacturing, commerce, and service industry. With its modern infrastructure, highly educated workforce and low production costs, it is an excellent location to manufacture goods or use it as a distribution center. With over 131 million habitants and 8th place in production, Mexico belongs to the most competitive countries worldwide.
Some Hard Facts
- 131 million (Mexico City, 25m)
- Size: 1,972,550 square km Size (5 ½ as big as Germany)
- BIP 2019: 1,3 Mrd. USD / 9860 USD pro Kopf
- 13 Trade Agreements with 52 states (Nafta, EU, Pacific, Sela, Aladi, WTO, IMF
- 17th place for tourists worldwide
- Currency: Pesos (1 Dollar = 1.2 Peso)
- Average age 29 years
- Average wage: $700 dollars / month
- 8th worldwide in production, third largest after the United States and Brazil in America
Mexico compete against China
China has been known as the destiny of outsourcing or expansion country worldwide; it has an efficient operation, low-cost labor and a large market potential. Though in the last years, Mexico has become an increasingly popular option for businesses looking to start its manufacturing base. This thanks to its open borders and trade policies as well as the similar time zones.The nations’proximity to the United Statesprovides companies with a large market for exporting its products and services, especially in manufacturing. Apart from that, Mexico also developed themselves as well to a competitive manufacturing partner because of theinternational agreements, as well as educated workforce and low costs. Indeed, no other countries than Mexico has signed more free trade agreements. At least 50 countries in North, Latin America, Europe and Asia allows free flow of goods and services
In addition, due to recent events like the pandemic, the broken supply chain (sea freight blocked the river), or thetense relation between the United States and China, many companies must overthink their strategy and diversify their portfolio. The concept of “reshoring” took off in China after the trade war with US in 2018 started. Tariffs on billions of dollars’ worth of Chinese goods led investors to reconsider the viability of China as a destination for manufacturing and other operations.
The largest industrial products that are exported from Mexico include food and beverages, tobacco, chemicals, iron and steel, petroleum, mining, textiles, clothing, motor vehicles, consumer durables, and tourism. The main agricultural products of Mexico are corn, wheat, soybeans, rice, beans, cotton, coffee, fruit, tomatoes, beef, poultry, dairy, and wood products.
In 2020, the gross domestic product in Mexico was 1.269 MRD USD in total, which reflected into per head in 9’900 USD and place 15 worldwide. Mexico is the world leader for exporting trucks and ranks among the top countries for global sales of (electrical) machinery, medical apparatus, plastic articles, cars and automotive parts or accessories.
Population distribution of Mexico
Mexico’s average population density is 64/km2.[2] Geographically, the population is located mainly in the central region of the country and around Mexico City metropolitan area, heart of the country’s political and financial activities. The most populated metropolitan areas are:
People and Culture of Mexico
Mexican culture is influenced by the rich history of its native peoples, the Spanish who ruled the country for three centuries. But not only, the country has a strong cultural affinity with the United States, particularly due to its long history of collaboration and exchange in culture, education and business. This makes it easier for businesses to collaborate and exchange with their nearshore partners, leading to smooth operations and effective teamwork.
Apart from art, Mexicans have a long history and tradition of sports. An ancient ball game was played in Mexico centuries ago, and back then, the losers were sometimes killed. Today, competitors in bullfighting and rodeo still endanger their lives while engaging in sports, but the most popular sports in Mexico are ones that are common in other countries, too, like soccer and baseball.
Stable Economy and Political Situation
Even though there are challenges of corruption, Mexico has developed itself as a stable economy and political situation, allowing businesses to build long-term relationships and protect their investments. he Mexican government has taken steps to improve the business environment and attract foreign investment, including implementing economic reforms and promoting investment in key sectors such as energy and infrastructure. In addition, the country has also a liberal trade policy and is a member of important international trade agreements, making it easier for businesses to access a wider market.
Economy facts Mexico
- BIP 2019: 1,3 Mrd. USD / 9860 USD pro Kopf
- 11th most populous country in the world.
- 13 Trade Agreements with 52 states (Nafta, EU, Pacific, Sela, Aladi, WTO, IMF)
- Currency: Peso
- Major Industries: food and beverages, tobacco, chemicals, iron and steel, petroleum, mining, textiles, clothing, motor vehicles, consumer durables, tourism Agricultural Products: corn, wheat, soybeans, rice, beans, cotton, coffee, fruit, tomatoes; beef, poultry, dairy products; wood products Natural Resources: petroleum, silver, copper, gold, lead, zinc, natural gas, timber
- Major Exports: manufactured goods, oil and oil products, silver, fruits, vegetables, coffee, cotton
- Major Imports: metalworking machines, steel mill products, agricultural machinery, electrical equipment, car parts for assembly, repair parts for motor vehicles, aircraft, and aircraft parts
- Natural resources found in Mexico include antimony, copper, gold, lead, natural gas, petroleum, silver, timber, and zinc.
Geographical facts Mexico
- The capital is Mexico City.
- Population 126,000,000. Yearly increasment ca. 1,2 %
- Major Cities; Mexico City 25(M), Guadalajara (7M) and Monterrey 6M).
- About 25% of the population lives in or near Mexico City. The middle of the country is the most populated. Most Mexicans live between the states of Jalisco and Veracruz.
- Size: 1,972,550 square km Size (5 ½ as bi gas Germany)
- Age structure2016: 0-14 years: 27%; 15-24 years: 18%; 25-54 years: 41%; 55-64 years: 7%; 65 years und older: 7%
- Climate: varies from tropical to desert
- Mexico faces natural hazards including tsunamis, hurricanes, volcanoes, and earthquakes.
Law facts Mexico
- Work hours per week: 48 -
- Holidays: 12 days after the 1st year of work
- Minimum wage: $10.50 dollars per day
- National Holidays: 8
- Average wage: $700 dollars / month
- 110,000 engineers graduate from a university each year