Did you know that Mexico is the 2nd most populous country in Latin America and the 15th in the world? It has about 127 million inhabitants and it is a very open economy, oriented towards exports and imports, occupying the 12th position in both flows worldwide, and has several commercial partnerships, which cover more than 50 countries (13 signed free trade agreements). Strongly integrated into the US economy, the country is very vulnerable to cycles in this market.
Its industrial structure, consisting mainly of small and medium-sized companies, has been gradually changing by integrating highly competitive and exporting sectors into its economy, such as the automotive, electrical and electronics, metalworking, hydrocarbons, furniture, food and extractive industry.
In the same way that the Covid 19 pandemic affected other countries, the Mexican GDP also suffered a contraction of around 8.0% in 2020. The following year, its economy achieved a partial recovery of 4.7%, in line with the international economic situation, especially in the USA. In 2022, its economic growth began to slow down, according to EIU estimates, around 3.0%, and it is estimated that it will worsen in 2023 (1.1%), due to the context of inflationary pressures, lack of fiscal support for consumers and businesses, tight monetary policies and a slowdown in US growth. In an even more pessimistic scenario, the current war in Ukraine is causing supply chain disruptions, which could harm the country's agricultural and industrial production.
The market continues to present business opportunities for our companies in various sectors, particularly machinery/equipment for industry, automotive (molds and components), aeronautics, medical devices, technologies, circular economy solutions and environmental protection, food and beverages, home and fashion.
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Imagem de Xavier Espinosa por Pixabay