🇲🇽 Betting on Mexico

Welcome to Latinometrics. We bring you Latin American insights and trends through concise, thought-provoking data visualizations.

If the last few months have taught us anything, it’s that flexibility is everything. With the interconnected world of today, companies have no choice: they have got to be able to adapt quickly, internationalizing to reach new markets and remain competitive.

For example, let’s say you’re a Mexican company hoping to line up some new suppliers in China, either for the domestic market or for eventual export up north. Or on the flip side, you’re an Asian firm hoping to sell to Mexico and expand into North America.

In either of these cases, knowing the logistics and market in Mexico is fundamental. So, let’s look at the major investors in Mexico: where they are, why they’re investing, and what this means to a consultancy or import-export business interested in the Mexican market.

Over half of all foreign direct investment (FDI) which has come into Mexico since the turn of the century has come from within North America—specifically, Mexico’s two USMCA partners, the United States and Canada.

The US is by far the largest foreign investor in its southern neighbor, with US firms having invested as much as the next nine highest source countries since 2006.

These firms are often attracted to Mexico’s convenient location, low labor costs, skilled workers, and nearshoring-driven access to North American supply chains.

European countries such as Spain and Germany have had their own lasting interests in Mexico, as seen by the countrywide dominance of banks like Santander and BBVA and the presence of auto factories such as the ones operated by Volkswagen in Puebla and Guanajuato, which exported 326K cars last year.

As members of the European Union, both Spain and Germany – alongside neighbors like France and the Benelux countries – have access to a favorable free trade agreement with Mexico, which promotes healthy long-term investments. And with healthy economic growth projected for this year, no wonder world-leading companies continue to see Mexico as a strong internationalization option.

Our Partner 🤝

If your company wants to expand within or from Mexico, Payoneer is the partner platform for border-free business.

Comment of the Week 🗣️

Lorea: Is Mexico not living to its full solar potential?

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Disclaimer

The information in this newsletter is intended to be of a general nature and does not constitute legal advice. While we have endeavored to ensure that the information is up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability or suitability of the information. In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever incurred in connection with the information provided.