2015: A great year for Mexican economy
- Posted by México
- On Monday August 17th, 2015
- 0 Comments
- automotive industry, Mexican economic growth, Mexico's tourism, NAFTA, OECD, PEMEX, SRS Relocations, upper middle income countries
Notwithstanding national social conflicts and the volatility of global financial markets in the last three years, Mexican economy seems to be recovering in 2015. This attractive background has caught foreign investors’ attention so that they can benefit with this promising scenario. It is forecasted that Mexican economic growth rebounds to 2.9% at the end of this year and reaches 3.5% in 2016.
According to data from the World Economic Forum on Latin America 2015, which took place in Riviera Maya, Mexico appears as the 15th largest economy in the world, with a value of $1.26 trillion dollars. Its GDP per capita is about $10,000 considering a 122-million population, figure that collocates the nation in the upper middle income countries as Turkey, Romania and Brazil.
It is worthy to distinguish that Mexico was the first Latin American country to enter the Organisation for Economic Co-Operation and Development (OECD) in 1994. This has helped government agencies to create new strategies that foster foreign investment and favor national economy from then until now. Moreover, the current president of OECD is the Mexican economist, Jose Angel Gurria.
The economic growth in Mexico in 2015 has been possible due to the recent reforms that Enrique Peña Nieto, the current president, has implemented. An overhaul in the taxing system, cuts in public spending, and the liberalisation of energy and communication sectors have become a very tough job, but appear to be the vehicles to take out the country from its financial crisis.
The main purpose of those actions is to take advantage of the most valuable resources of the country by obtaining the biggest gain. Mexico is perceived as a commodities and manufacturing giant worldwide, it has the largest proven silver reserves and the 10th largest oil reserves in the world. In fact, PEMEX, Mexico’s state-owned oil company, has revenues of about $130 billion dollars for its production.
Mexican automotive industry has also had an amazing growth in the last seven years. Companies like Volkswagen, Toyota, Nissan, Ford, General Motors and Fiat Chrysler have invested a lot of money in building and maintenance of its local assembly plants, creating about 675,000 jobs for Mexican people since 2008. Nowadays, Mexico appear as a competitive automobile exporter.
In addition, Mexico’s exports shape the 3rd part of the country’s GDP. As it is a member of the North American Free Trade Agreement (NAFTA), Mexico has become one of USA’s largest trade partners amounting billion-dollar interchanges everyday. The positive commercial balance between both countries has also made that Mexico become one of the largest holders of USA treasury bonds.
Apart from its natural and cultural wonders, Mexico has a solid tourist activity. Regarding to World Tourism Organization (WTO), 1,138 million foreign travelers came to Mexico in 2014, showing a 4.7% growth in tourism and collocating the country as one of the top 10 destinations worldwide. This year, World Travel and Tourism Council forecasts a 6.1% growth due to the constant reforms to visas.
Mexico is living an age of structural changes that are impacting positively in the country’s macroeconomy. There is a long road to walk in order to maintain stability and to foster social development, but federal government and transnational companies are making a big effort to transform current conditions in better ones. Visit us and have a look.
0 Comments