Mexico is the second largest economy in Latin America and despite unfavorable global market conditions, continues to bounce back strongly from the COVID-19 pandemic.
The Mexican economy grew three percent last year on the back of booming tourism and a steady increase in automotive exports. These are positive indicators for the growth in Mexico business opportunities in 2023.
To gain a competitive advantage and make the most of these business opportunities, you must understand the latest legal, accounting, and tax compliance rules in Mexico.
Let’s examine these factors and look at why Mexico stands out as one of the best countries to do business in this year.
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Why Is Mexico a good country to do business in?
Mexico is known as the gateway to Latin America and is famous for its tourism, culture, cuisine, and diversity. Its economy is the 15th largest in the world in GDP terms and the 13th largest by purchasing power.
It has a growing population of over 126 million people and borders the world’s largest consumer market, the United States of America. In 2022, according to the World Bank, Mexico ranked 60th among 190 economies in the ease of doing business.
Mexico currently has 13 free trade agreements with 50 countries, making it one of the most open and competitive markets in the world.
It also offers significant potential for capital investment, as it ranks 11th globally in terms of providing credit opportunities to new international businesses. What’s more, the country’s weaker currency provides greater buying power for your Mexico business opportunities.
A highly-skilled talent pool awaits you in Mexico. Its workforce was ranked ninth best out of over 60 countries in ManpowerGroup’s Total Workforce Index. It scores the workforces of countries on over 200 unique factors grouped under the categories of availability, cost efficiency, regulation, and productivity.
Mexico’s Economy Minister Raquel Buenrosotro announced in November that “more than 400 North American companies have the intention to carry out a relocation process from Asia to Mexico.”
The Mexican government is focused on improving the country’s infrastructure including telecommunications, energy, and transport sectors.
Overall, the government has a positive attitude towards foreign investment offering tax credits, research and development incentives, and duty-deferral programs. All these factors make Mexico an attractive location to do business in 2023.
The best industries for Mexico business opportunities
Mexico has become a prominent manufacturing economy, specializing in the production of several significant exports, such as electronics, petroleum, and agricultural products.
However, on top of the manufacturing market, Mexico has business opportunities in these five industries.
1 – Fintech
The Mexican financial technology market has experienced substantial growth in recent years. It is expected to increase in 2023 with the rise of mobile device transactions.
With the country’s increasing acceptance of technology, digital financial tools like mobile wallets and contactless payments will likely continue to thrive in Mexico. The 2022 Latam Tech Report predicted the use of cash will decrease by 38 percent in Mexico, by the end of 2024.
Investors can find a diverse range of encouraging Mexico business opportunities in the financial technology sector.
2 – Tourism
Tourism is an important industry in Mexico, it currently accounts for eight percent of Mexico’s GDP. In 2022, between January and November 58 million international visitors entered the country with the average spending increasing by 38 percent.
Mexico has one of the fastest-growing tourism industries in the world. According to a recent Economic Impact Report (EIR), will generate more than 2.7 million new jobs over the next ten years.
3 – eCommerce
The Covid-19 pandemic dramatically accelerated the adoption of eCommerce in Mexico. It is projected to grow annually by over 16 percent until 2027 with over 88 million users.
New markets are emerging while established markets have the potential to increase even more. The Mexican eCommerce market offers significant business opportunities in 2023.
4 – Pharmaceutical
Mexico has the second-largest pharmaceutical market behind Brazil in Latin America and ranks in the top 15 globally. By 2025, it is forecast to grow to over US$30 billion.
It is home to a robust manufacturing industry for antibiotics, analgesics, and antiparasitics. Additionally, the local market tends to prefer branded products over generics, which makes it an ideal location for licensing innovative medicines.
5 – Automotive
Experts predict that Mexico could become the third-largest auto part manufacturer in the world. Auto part production in Mexico hit a new record high of US$107 billion last year, reflecting a 12.6 percent increase from the previous year.
As nearshoring activities continue to grow, the future looks bright for the Mexican automotive industry in 2023 and beyond.
What is the economic outlook for Mexico business opportunities?
The Mexican economy continues to defy the global downturn with positive numbers in 2023. The International Monetary Fund (IMF) raised its forecast for Mexico’s 2023 GDP growth in January.
Its strong automotive, agriculture, and tourism sectors have helped it stay afloat alongside a rise in nearshoring. Despite rising inflation, Mexico´s rate of 7.9 percent puts it in a better condition than other Latin American countries like Colombia, Chile, and Peru.
Now is a great time to be investing in Mexico business opportunities before the market becomes oversaturated.
Biz Latin Hub can help grow your business
If you are considering doing business in Mexico, Biz Latin Hub is an ideal partner for you.
We have a team of bilingual corporate support specialists based in Mexico who can offer you personalized services. These services include company formation, accounting and taxation, legal support, hiring, and PEO.
Our experts are equipped to assist you in doing business not just in Mexico, but also in the rest of Latin America. To learn more about our services and how we can help you succeed, get in touch with our team of specialists today.