What has changed since 2020, and where does Mexico stand now?
Over the past four years, the global landscape for business, trade, and daily life has undergone considerable transformation following the pandemic. In this period, Mexico has positioned itself as a key hub for business expansion, particularly as companies have increasingly looked for alternatives to Asia for manufacturing and trade.
This report focuses on both the opportunities and challenges Mexico faces in solidifying its position as a global economic powerhouse.
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Strategic Advantage: Mexico's unique geographical position, bordering the US and providing access to both the Atlantic and Pacific Oceans, positions it as a pivotal hub for global trade, enhancing its appeal for international investment.
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Manufacturing Growth: The manufacturing sector is a powerhouse, generating $607B USD in revenue in 2023 and maintaining a strong 7% CAGR from 2019 to 2023, surpassing the national average growth.
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Foreign Investment Surge: In the first half of 2024, Mexico secured $31B in FDI, with 97% stemming from reinvestment, signaling Mexico's stability and its strategic advantage for companies looking to relocate operations closer to the US.
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Infrastructure Development: Significant investments in infrastructure, including $8B for 128 new industrial parks by 2030 and major government projects, are set to enhance Mexico's competitiveness and connectivity.
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Risk Factors: Mexico faces challenges including water scarcity in industrial regions, political uncertainties, USMCA review in 2026, and security concerns that require careful planning and mitigation.