Why is the Mexican Economy So Attractive?

Mexico economy attractive investment
Why is the Mexican Economy So Attractive?

Mexico is a booming country with an increasing amount of foreign investment. If you are curious as to why you should consider this country as a potential candidate to start your business abroad, here’s a brief overview of the state of the economy in Mexico and why it is such an attractive option for foreign investment.


The Brief Look at the Mexican Economy

Today, Mexico is the 15th largest economy in the world with an estimated population of over 122 million people. In addition, the World Bank report of 2015 ranked Mexico as the 38th most business friendly country in the world in terms of regulatory ease. Its participation in the North American Free Trade Agreement and membership in the Organization for Economic Development has turned it into one of the leading trading nations.

Mexico has become the United States’ second-largest export market and third-largest source of imports. With a current GDP growth of 2.5%, some experts predict that Mexico can become the 6th largest world economy by 2050. Amidst such economic boom, what does Mexico have to offer to foreign investors?

Opportunities for Foreign Investment in Mexico

Mexico economy attractive investment
Mexico is the 10th largest Foreign Direct Investment recipient in the world

According to the UNCTAD report, Mexico is the 10th largest Foreign Direct Investment recipient in the world, receiving key contributions from countries like the U.S, Spain, Canada and The Netherlands. So what is it exactly that drives these important foreign investors?

An Ideal Geographic Location

Mexico’s geographic location gives it an edge over other Latin American countries. It serves as a bridge between North and Latin America. And as a border country of the U.S., Mexico has become a critical access point to high demand markets in Asia and Europe. Plus, thanks to its colourful culture and rich history, it is the sixth hottest tourist destination worldwide, making it a very appealing location for investors.

Low Manufacturing Costs and a Skilled Labour Force

Mexico’s skilled and relatively inexpensive labour has been an attractive selling point for foreigners looking to reduce their company’s manufacturing costs. A recent 2015 study showed that manufacturing costs in Mexico were significantly lower than other Latin American countries.

Growth Potential Across Several Sectors

While Mexico continues to be a developing country, many domains are untapped and there is still much room for improvement. Sectors such as the automobile, finance and energy industry can easily be explored and improved with the help of foreign investment.

With a thriving economy, great geographic location, young and skilled labour force and growth across a range of sections, now is the perfect time to begin doing business with Mexico. Whether it be through the formation of a company or through importation/exportation, Mexico is attractive environment for foreign investment.


At Mexico Business Services, as part of the Biz Latin Hub group, we can help you get started with your business in Mexico. Should you have any questions or concerns we’ll be glad to guide you in the right direction. Please contact Craig here.






Tags: attractive economy | Investment | mexico

Categories: Mexico

Pin It on Pinterest

Share This

Share This

Share this post with a friend or colleague!