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A key sector of the Mexican economy, the energy industry is set to undergo radical changes as a result of the structural reform passed by the government in 2013. The reform will open the nationalised oil industry to foreign investment, allow for open competition in the electricity market, enable private companies to build natural gas pipelines with more freedom, and will give producers of clean energy better access to customers. For the first time in decades, the energy reform is set to break the existing monopolies in the oil and electricity segments. While the government estimates the energy reform will add between 0.5% and 1% to GDP each year between 2014 and 2018, the end of the current administration’s term, this could be an overstatement of the short-term effects of the reform. Other estimates point to a boost to the economy of between 1.5% and 1.7% on average per year from 2017 to 2030, with a lesser benefit in the early years of this period and a larger one later on. This chapter includes interviews with Pedro Joaquín Coldwell, Minister of Energy; and Emilio Lozoya Austin, Director-General, Petróleos Mexicanos (PEMEX).

Mexico’s banking system has been experiencing a period of stability unseen in its recent history. With sound and well-capitalised banks, the task now seems to be improving Mexico’s low banking and credit penetration. Domestic credit as a proportion of GDP stood at 47% in 2013, according to the World Bank, well below the average of 75% for Latin America and lower than Brazil (111%), Chile (108%) and Colombia (73%). Commercial banks hold 51.7% of assets in the financial system, with total assets reaching $505.05bn in December 2013, 8.8% above the $466.89bn in December 2012. Credit was the most important contributor to assets, accounting for 46% of the total, or $235.4bn. Following a financial reform in early 2014, significant changes to the system are expected over the next few years. This chapter includes an interview with Alejandro Valenzuela del Río, CEO, Grupo Financiero Banorte.

Despite being deeply affected by the global financial crisis of 2008-09, Mexico’s economy had been recovering since 2010, growing 5.1% and around 4% in 2011 and 2012, respectively. A steady recovery was interrupted in 2013 by growth of just 1.1% as a result of weak exports and a contraction in the construction industry. Overall export growth slowed from 6.1% in 2012 to 2.6% in 2013, shaving about three-quarters of a percentage point from GDP growth. A fall in oil prices dragged down the value of oil, one of Mexico’s most important goods, contributing to a 6.2% decrease in oil exports in 2013. While informality, inadequate government revenues and deficient domestic supply chains continue to plague the economy, the current government’s series of ambitious reforms, specifically for energy, telecoms and education, seem set to improve the economy’s competitiveness. This chapter includes interviews with Ildefonso Guajardo Villarreal, Minister of Economy; Francisco González Díaz, General Manager, ProMéxico; José Ángel Gurría, Secretary-General, Organisation for Economic Cooperation and Development (OECD); and Enrique García Rodríguez, Executive President, CAF development bank of Latin America.

This chapter explores the laws and regulations that affect businesses and investors in Mongolia. It also features a legal framework viewpoint from OBG partner, David Beckstead, Foreign Legal Consultant with Lehman, Lee & Xu Mongolia.

Featuring a tax and accounting interview with OBG partner Peter Markey of Ernst & Young, this chapter offers guidance on the local tax system to those interested in opening a firm or investing in Mongolia.