While renegotiations of the North American Free Trade Alliance (NAFTA) have led to an environment of uncertainty for Mexican industry, the automotive sector remains solid and on track for further development driven by rising vehicle production, local sales and export demand. Mexico is home to 24 carmakers, with manufacturing facilities in 24 states, producing cars, light and heavy trucks and...
Mexico’s telecoms sector is the second largest in Latin America after Brazil in terms of subscriber numbers, contributing approximately 2.4% to GDP in the third quarter of 2017. Penetration of products and services, such as mobile phones, broadband internet and pay-TV, are also on the rise, having ranked well below the global average until 2015. The rollout of a 5G network demonstrates Mexico’...
Mexico’s banking industry enjoys high capital adequacy ratios and is benefitting from robust profit margins. While some stakeholders have pointed to the sector’s conservative approach as a reason for the slow progress in increasing penetration levels, the sector is in fact expanding financial services to a broader share of the population. Relative to the size of the Mexican economy, the...
Mexico’s transport sector is undergoing major expansion, providing increased investment opportunities. Among the ongoing projects is a $13bn international airport in Mexico City, which was originally slated for completion in 2020 but is likely to be delayed until 2023. Work is also under way on a new urban metro system in the capital, and upgrades to the railway and road system. In addition,...
Traditionally a barometer of a Mexico’s economic health, the construction sector saw investment slow in 2017 as a result of a dip in public spending on infrastructure works and uncertainty among private investors over the possible outcome of the renegotiation of the North America Free Trade Agreement. This could further push up the already rising costs of materials brought by the February 2018...
Performance in Mexican industry is heavily dependent on the particular segment in question and its current economic position. The automotive and aeronautics manufacturing sectors, concentrated mostly in the Bajío region of Mexico in the states of Querétaro and Guanajuato, are driving demand for inputs like light-weight polymers, while strong growth in agro-industry across different regions of...
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