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The stable growth of the Mexican economy and the low level of insurance penetration in the country are likely to continue to drive growth in the sector over 2018 and 2019. In the absence of further natural disasters the loss ratio of insurers, which rose following the 2017 earthquakes, can be expected to stabilise in 2018. Nevertheless, the rise in incidents of car theft will likely require action on the part of insurers, with a more comprehensive product design. However, new regulations and a closer management of risk should support the industry in overcoming these challenges. Incorporating emerging technology into the design and distribution of products will be key for insurance firms to stay competitive. This chapter contains an interview with Manuel Escobedo Conover, President, Mexican Association of Insurance Companies.

While corporate bond issuances have only expanded at a moderate rate, Mexico’s sovereign bond market has long been a central component of the bourse’s activity, attracting a growing volume of foreign players. An assortment of new structured products launched over recent years has helped channel market investment towards infrastructure development in areas such as transport and energy. Despite external challenges, the Mexican Stock Exchange has proven effective at introducing innovative products and keeping investors interested in what is on offer. While higher interest rates expected over 2018 and 2019 may make some new products less appealing, the diversification brought about by special purpose acquisition companies, real estate investment trusts, first investment project certificates and development capital certificates is likely to attract new investors and help bridge the gap between capital market utilisation and financing the country’s economic needs. This chapter includes interviews José Oriol Bosch Par, CEO, Mexican Stock Exchange; and Santiago Urquiza Luna-Parra, President, Institutional Stock Exchange.

Recording consistent growth since 2011, Mexico’s tourism sector has continued to expand steadily. According to government counts, more than 39m foreign tourists visited the country in 2017. Demand for Mexico’s medical tourism has recently picked up and is forecast to grow further, largely as a result of the changes made to the US health care system. Mexico’s natural beauty has long attracted tourists, but now the country is working to fully harness its broad potential. New transport links have been built and further projects are under way, which should boost the flow of tourists. However, there is room for improvement in terms of infrastructure at tourist centres and international perceptions of security. Whether the sector maintains or loses momentum under the new administration remains to be seen.

Mexico has posted strong agricultural export growth since 2013, turning around a deficit in the country’s trade balance of agriculture products that reached nearly $4bn in 2012. Growth in recent years has been driven by high-value berry and avocado exports, as well as the expansion of large-scale agro-industrial complexes in the central part of the country. Experts note that many advantageous conditions have been external, meaning that little to no control can be exercised over them in upcoming years. Such factors included the good exchange rate against the US dollar, and bumper crops of berries and avocados due to favourable weather. Other circumstantial advantages in recent years have even included a drought in the California growing region of the US, which directly competes with Mexico. The extent to which the Mexican agriculture industry can react with force and flexibility if one or more of these positive factors if removed in the future will demonstrate the sector’s true growth and resilience. This chapter contains an interview with Adrián Iturbide Mejía, Former President, Mexican Association of Avocado Producers and Exporters.

Driven by an ongoing process of economic opening since the 1990s, Mexico has come to establish a solid macroeconomic base. Structural changes have allowed the country to improve trade flows and helped to soften the impact of a gradual slowdown in hydrocarbons production and exports. Equally important have been the profound economic reforms initiated after 2013, with a reshaping of strategic sectors such as energy and telecoms. The energy reform alone is expected to bring in $180bn worth of new investment by 2030, as foreign companies expand their hydrocarbons exploration and development efforts. Although destabilisation of trade flows would have a heavy impact in the short term, the overall outlook for the Mexican economy remains strong. This chapter includes an interview with Juan Pablo Castañón Castañón, President, Consejo Coordinador Empresarial.

Steady progress has been made in the expansion and modernisation of Mexico’s health care sector in recent years. Some of these improvements have stemmed from the sector increasingly turning to public-private partnerships, with the private sector playing a larger role in operational management, outsourced services and construction. Major steps have also been taken to support the expansion of the country’s pharmaceutical industry. Although the country is very close to achieving its goal of universal coverage for all citizens, as per its constitutional mandate, some obstacles still remain, such as the gaps in insurance coverage between sectors. In particular, the rise of chronic illnesses and non-communicable diseases, combined with the added needs of the country’s ageing population, appear set to place additional stress the country’s health system, which is still not currently capable of tackling these emerging health issues. The sector will need to balance private and public actors, while at the same time boosting its domestic profile and attracting important international investment in key segments of the industry. This chapter includes an interview with Pablo Escandón Cusi, President, Mexican Health Foundation.