Mexico

Mexico is the 11th largest economy in the world. Its relatively young population of approx. 110 million – with a median age of only 22 years - generates a GDP of approx. U$ 1,500 billion.

For the past 25 years, the country’s economy has been rapidly liberalized and is now well positioned for its continued growth:

• Internal Changes - include the privatization of  key sectors and industries, currency and inflationary stability, and an overall significant reduction in the role of government in business.
• External Changes - such as major import-duty reductions and the promotion of Foreign Direct Investment (FDI) have distinctively inserted the country into the core of global business. Free trade agreements have been signed with over 42 nations, including NAFTA and  the European Economic Community.

Thus, massive FDI and international trade have resulted.

The year 2000 presidential election brought a healthy balance after 7 decades by placing a leader encompassing the empowerment aspirations of the middle class. It was a logical consequence of the economic liberalization program and became the platform for further sustainable growth. The 2006 presidential election further ratified the continuity of this positive evolution.

Still, investors should be aware of the many challenges that lie ahead, most notably in the areas of social development, including education, health, employment, justice and security. These are major and will take decades to resolve. Areas of challenge in the business sector include breakup of private / public oligopolies; fostering a culture of respect for consumers and society. As has been seen in many countries throughout history, long term economic stability cannot be attained without social justice.

The international investment community has now clearly recognized the country’s economic and political achievements. As result, Mexico has risen into a distinct category, above many of its Latin American and Asian competitors of the late 1980’s.