With a strategic geographic location, tax incentives, excellent supply chains, competitive costs, and a talented and young workforce, Mexico has become the 15th largest economy in the worldtherefore, in one of the most attractive emerging countries for foreign investors.
According to him World Investment Report 2022, published by the United Nations Conference on Trade and Development (UNCTAD), in 2021 our country ranked as the 10th largest recipient of foreign direct investment (FDI) and 5th among developing economies.
These data are quite encouraging. It must be taken into account that during the pandemic many companies went through a stage of great uncertainty, instability and little growth.
Mexico, a superpower?
Despite this, Mexico has once again proven to be one of the most attractive and open countries in the world for imports and exports. This explains the recent strong increase in cash flow in the country and its role as a leader in the region.
And it is that according to the data provided by the Bank of Mexico, In 2021, exports of goods and services from Mexico totaled more than 465 billion dollars, equivalent to 49% of the national GDP, with Mexican production fully integrated into global value chains. Also, in Latin America, Mexico’s exports represented 37.9% of the region’s total in 2021, consolidating itself as the main exporting power. In particular, Mexican exports of medium and high technology manufactures stand out, representing more than half in the region.
This growth is not difficult to assimilate if one takes into account that Mexico has many factors in its favor, in addition to enormous human potential and extensive resources to be a leading economy worldwide. Supporting this premise, it is important for me to mention some of the strengths that give us a unique and exceptional potential for growth
First of all, we must mention Mexico’s key position. The proximity of our territory to the largest economy in the world – the United States – generates an economic spillover of trillions of dollars in products and more and more services.
Linked to the above, Mexico is one of the largest exporters to the United States; The trend shows that the North American country imports less and less from China, relocating its production in the neighboring country of Mexico. In fact, to this day, Mexico is the second largest trading partner for the United States.
Third, it should be noted the great demand for talent and specialized human capital. Currently, our country is a primary supplier of professionals. The reason? The creativity and capacity of Mexican talent make companies from all over the world bet heavily on them.
Another key point is that we have current trade agreements that allow the activity of maquiladoras of American companies in Mexico. As a consequence, more and more Americans are buying properties and land in Mexico, thus raising the quality of life and the added value of the country.
Last but not least, the enormous consumption within the domestic market should be highlighted. In 2021, Mexico’s gross domestic product (GDP) amounted to approximately 1,322 billion dollars. It is estimated that it will reach 1.646 billion in 2027. Likewise, better quality products and services are increasingly demanded, a demand that yes or yes requires digital adoption.
Digital transformation in the country
Regarding digital transformation in the country, according to data from LNS Research, 29% of companies have digital transformation programs in pilot phases, 16% have already implemented their digital transformation according to their objectives, 23% have budgeted to start their projects in the following year and 6% anticipate it within the next three years, which shows the importance of these issues.
That said, it is essential to understand that for an economy to grow there must be large amounts of consumption. And, as we all know, nowadays sales are mainly generated through e-commerce. For the same, the incorporation of technology must be a priority for companies in all sectors.
In short, Mexico has all the qualities to position itself as a leading economy worldwide. Therefore, it is key to understand that a country with greater strengths in the field of innovation, with more demanding consumers, more dynamic companies, more prepared workers and a promoting government, will always be better prepared to face the challenges that arise. Above all, to remain competent and stand out in the global market.
Hugo Cen Hugo Cen is Founder of Ai Lab School – Online school of programming in artificial intelligence, co-founder of Digital Lab Agency binational digital marketing agency, director of the organizing committee of Hackity the League of programmers in Mexico. He actively organizes hackathons and community events to develop the talent of Mexican programmers. His active participation within the technology ecosystem fosters the culture of programming in Mexico, as well as promoting economic generation through the development and commercialization of innovation. He graduated from San Diego State University (SDSU) with a degree in International Business.