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There is much to be celebrated for the Mexican health care system, which is moving in towards its goal of providing all citizens, regardless of wealth or employment, access to high levels of care. In the last three years, movements to increase coordination between health providers, cut costs and improve services are also to be commended. However, the inherent inefficiencies of the fractured public system and the bureaucratic wastage that accompanies it are a continual obstacle to providing the best possible service. Nevertheless, the private sector already plays a crucial role in the provision of health care in Mexico, which is likely to expand in the future. A great deal will depend on the general elections in 2018, which will determine the direction of a much-needed structural reform to the sector. This chapter includes an interview with Julio Sánchez y Tépoz, Federal Commissioner, Federal Commission for the Protection against Sanitary Risk.

Following 10 years of growth roughly on par with that of the overall economy, Mexico’s agriculture sector outstripped GDP growth by 1.2 percentage points in 2016 and registered a trade surplus for the second year running. Given the uncertainty over future US trade policy, there has rarely been a more urgent or ripe time to address the needs of Mexico’s agriculture industry. In the short term, diversification of export markets and of imports from the US can mitigate the impact of a potential, if unlikely, tariff hike. In the long run, however, the right kind of investment could help unlock agricultural potential. This chapter features interviews with José Calzada Rovirosa, Minister of Agriculture, Livestock, Rural Development, Fisheries and Food; and Gaston Mauvezin, CEO, Proteak.

Receiving more than 35m international visitors in 2016 – 2.8m more than in 2015 – Mexico continues to move up the world tourism league table. The country’s ranking in terms of arrivals in global tourism destinations improved from 10th to ninth position in 2016, according to the UN World Tourism Organisation. A weak peso has boosted margins for operators and attracted more visitors while at the same time bolstering domestic tourism in Mexico. The famous sun, sea and sand destinations of Cancún, Los Cabos and Puerto Vallarta continue to dominate the international tourism market, and new projects are set to expand capacity of this tried-and-tested model. This chapter includes interviews with Enrique de la Madrid Cordero, Minister of Tourism; and José Carlos Azcárraga Andrade, CEO, Grupo Posadas.

Mexico’s construction industry is changing gears in 2017. It is the fourth-largest value-added activity in the country and constitutes 8% of GDP. A young, growing population and a rising middle class continue to drive demand for homes, shops, factories and offices. The infrastructure industry is preparing for a future where private sector funding takes over from the public sector and becomes the key engine of growth. Furthermore, profits at Cemex, Mexico’s multinational cement company, have reached record levels, and the project to build Mexico City’s new airport – which is now under way – is the biggest of its kind in Latin America. Furthermore, Mexico’s real estate sector is preparing for a period of moderately increased uncertainty over interest rates, inflation and trade. Despite some apprehension, sales continue and medium-term market fundamentals remain positive. There were 10 real estate investment trusts trading on the Mexican stock exchange in 2016, with a combined capitalisation of some $13.3bn. Some property specialists say worries over inflation and a weaker peso may actually create new investment opportunities, and underline the value of property as a secure, long-term holding. This chapter contains an interview with Jerónimo Gerard Rivero, CEO and Founder, Mexican Retail Properties.

Mexico’s transport sector has witnessed rapid growth in recent years, although question marks over economic integration with the US – one of the driving forces of transport growth – are introducing a period of relative uncertainty. However, the fundamentals remain positive for the sector, based on demographic growth, rising living standards, a growing middle class, and the expansion of manufacturing and consumer services. In recent years the transport sector has tended to grow at higher rates than the Mexican economy as a whole. Transport GDP grew by 4.3% in 2015, slowing to 2.8% in 2016, while total GDP growth in 2015 was 2.6%, falling to 2.3% in 2016. Most stakeholders in Mexico’s transport and logistics sector recognise that protectionist headwinds in US-Mexican trade could have a negative impact on their industry during the course of 2017. However, fundamentals in the industry are still positive, and there is room to increase efficiency and competitiveness. This chapter features an interview with Andrés Conesa Labastida, CEO, Aeroméxico.

The Mexican telecoms sector is one of the largest and most dynamic in Latin America. The government’s telecoms and broadcasting reforms, introduced through new legislation and a constitutional amendment in June 2013, are widely seen as some of the most successful changes made by the administration of President Peña Nieto. One sign of this is the contribution of the telecoms sector to GDP, which increased to around 3.6% in 2016, up from 2.6% five years earlier. In addition to telecoms, Mexico’s ICT sector has been experiencing strong growth in recent years. ICT exports have accounted for around 10% of Mexican manufacturing exports. In 2014 the value of Mexican ICT exports was $62.4bn, ranking the country as the world’s fifth-largest ICT exporter, behind China, the US, South Korea and Japan. There is clearly major scope to increase technology market penetration in Mexico, particularly by increasing digital management systems across manufacturing industry and services where take-up has so far been limited. The fundamentals of the technology sector point to strong medium and long-term growth.