Mexico - Export Britain

Export Britain

Mexico

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Capital
Mexico city

Largest city
Mexico city

Administrative divisions
31 sovereign states

Currency
Peso (MXN)

Area
1,972,550 km2

Population
(2012) 115,296,767

Calling code
+52

Official language
Spanish

Latest Business Opportunities

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Ease of trading across borders

Importing a standard container of goods into Mexico requires:

4documents
12days
£1176

Introduction

Mexico is considered both a newly industrialised country and an emerging power. Mexico has the 14th largest nominal GDP and the 11th largest by purchasing power parity. Mexico is the largest North American auto-producing nation, recently surpassing Canada and the US. The industry produces technologically complex components and engages in some research and development activities. As an export-oriented economy, more than 90% of Mexican trade is under free trade agreements (FTAs) with more than 40 countries.

Economic snapshot (% annual growth rate)

201120122013-16
GDP 3.9 3.9 4.3
Export of goods and services 7.6 4.6 7.4
Import of goods and services 7.1 4.1 8.0
Inflation 3.4 4.1 3.5
Short-term interest rates (%) 4.4 4.2 4.9
Exchange rate (per £) 22.43 20.86 20.66
Population 1.2 1.2 1.1
Unit labour cost -0.5 -4.9 -2.0
Source: Oxford Economics

Economic outlook

The performance of the Mexican economy last year continued to be constrained by a weak global environment. At the close of 2012 the economy continued to grow at a pace of 0.5% compared to the previous quarter. The service sector performed particularly well in the last quarter, with an estimated growth of around 3.5% annually. Mexico will continue to grow at above 3.0% in 2013. The implementation of energy and fiscal reforms will boost investment potentially increasing GDP by a further 0.9 percentage points.

Trade outlook

In 2012 almost 80% of all goods exports from Mexico were destined to the US. Although the relative importance of North America is set to fall in the medium term, it will still account for around 70% of Mexico’s exports, remaining the most important trade partner. India will also become one of Mexico’s top five export markets, as its rapidly expanding middle class demand more consumer goods. Over the medium term, Mexico’s trade will become more global and less regional in focus. The fastest trade growth will be with countries outside the Americas, with China and India likely to increase at a particularly fast pace over the medium term.


SWOT analysis

Strengths
Oil
Structural reforms
Weaknesses
Slowdown of the US economy
Crime
Opportunities
Growing infrastructure
Education
Threats
Bureaucracy
Reliant on oil exports

Mexico's trade with the UK

Sector segmentation growth

Sectors to watch:
  • Food
  • Motor vehicles 
  • Utilities

Manufacturing

  • Aerospace
  • Shipping
  • Cement, plaster, concrete etc

Fastest-growing exporters into Mexico

Rank2012
1 India
2 Turkey
3 Poland
4 China
5 Indonesia
6 Vietnam
7 Egypt
8 Hong Kong
9 Brazil
10 Bangladesh

Total merchandise trade - Leading import partners

Total merchandise trade - leading import partners
Opportunities for UK businesses

Mexico is a country of huge potential which has demonstrated predictable, stable economic growth. It is a dynamic market and analysts predict that its economy will be the world´s seventh-largest by 2050. Mexico offers UK businesses well-established and integrated supply-chains, an increasingly skilled workforce, and free trade agreements with 44 countries. Opportunities for UK businesses lie within the construction, manufacturing, transportation, telecommunications, retail and automotive sectors.

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