competitive advantages for investing in mexico
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Competitive advantages for investing in Mexico. Mexico: a leading economy. A country with competitive sectors. ProMéxico’s strategies. Competitive advantages for investing in Mexico. 5 competitive advantages. Exports platform. Macroeconomic environment. - PowerPoint PPT PresentationTRANSCRIPT
Competitive advantages for investing in Mexico
Mexico: a leading economy
A country with competitive sectors
3
ProMéxico’s strategies
Competitive advantages for investing in Mexico
4
Exports platform
Internalmarket
Humancapital
Advanced manufactu
re
Macroeconomic
environment
Mexico’s competitiv
e advantage
s
5 competitive advantages
5
ForecastsE
U
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n
Ale
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ia
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ia
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Can
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ico
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.
02,000,0004,000,0006,000,0008,000,000
10,000,00012,000,00014,000,00016,000,00018,000,000
Fuente: Goldman Sachs. The N-11: More Than an Acronym. Documento de economía mundial No: 153. Marzo de 2007/ HSBC/ ACCENTURE.1/ Pronóstico de Goldman Sachs / Fondo Monetario Internacional.
20501
5th
pla
ce
2013World’s largest economies
14
th p
lac
e
Goldman Sach’s ForecastGross Domestic Product
(Billion USD)
6
Gross Domestic Product(Billion USD)
Goldman Sachs estimates that Mexico will be the
5th largest economy by 2050.
According to Accenture, Mexico will be one of the
Big Six in 2025.
According to HSBC Mexico
will be the 8th largest economy in the world by 2050.
US
A
Chi
na
Japa
n
Ger
man
y
Fra
nce UK
Bra
zil
Rus
sia
Ita
ly
Ind
ia
Can
ad
a
Aus
tra
lia
Spa
in
Me
xico
Sou
th K
ore
a
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
0%
20%
40%
60%
80%
100%
120%
140%
160%
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000Manufactures Oil Primary Inflation
Perc
enta
ge o
f infl
ation
Billi
on d
olla
rs
Solid macroeconomic environment
7Source: INEGI / Bank of Mexico.
Evolution of inflation, exports and international reserves in Mexico (2000- 2013)
Reserves record: 176 billion dollars
Exports record: 380 billion dollars
Reserves
FDI flows into Mexico (1999-2013*)
8Source: Ministry of Economy. General Directorate of Foreign Investment. */ Figures to September 2013.
Record-high
MUSD1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
15,453
35,188
9
A3Baa1
Baa3
BBB+ BBB+
BBBBBB
BBB-
BBB+ BBB+
BBBBBB
BBB-
Positive Ratings
* Scores that are below the dotted line are investments with high degree of risk or speculation.
Source: Fitch Ratings, Standar & Poor’s Rating Services, Moody’s Investor Service.
Exports platform
Internalmarket
Humancapital
Advanced manufactu
re
Macroeconomic
environment
Mexico’s competitiv
e advantage
s
5 competitive advantages
10
1
812
1720
45N
umbe
r of c
ount
ries
Our FTAs give privileged access to 61% of the world’s GDP
Number of countries with privileged access*
We are committed to free trade
11Sources: Brazil; China: Colombia:; United States: ; Chile: Direcon; México: Ministry of Economy.
Easy access to the world
12
Days port to portDestination
Germany
Brazil China Colomb
ia Korea US India Mexico Poland Turkey
New York 11 15 32 6 21 - 25 6 12 16
L.A 25 23 18 10 17 - 31 4 26 28
Rotterdam - 17 32 15 33 11 20 15 1 10
Yokohama 35 35 4 24 3 15 17 18 36 27
Río de Janeiro 17 - 31 12 34 15 24 16 18 19
Shanghai 32 32 - 26 2 17 11 20 33 24
Shenzhen 30 30 - 28 4 19 9 22 31 22
Average 25.0 25.3 23.4 17.3 16.3 15.4 19.6 14.4 22.4 20.9
Fuente:Sea Rates
Source: SCT.
Lázaro Cárdenas
Manzanillo
Veracruz
Tampico
Altamira
Guanajuato
Monterrey
Guadalajara
SLP
13
A country with great infrastructure
Fuentes: SCT/ US Department of Transportation.14
A country part of NAFTA
Exports platform
Internalmarket
Humancapital
Advanced manufactu
re
Macroeconomic
environmentMexico’s
competitive
advantages
5 competitive advantages
15
Demographics on our side
16
Population: 122 milliones
Domestic Market: main features
17Consumer Expenditure Chart and GDP Growth - Source: Trading Economics
GDP TREND:
GDP per Capita (Actual): $ 8519
GDP growth rate (2015): 3.5%
CONSUMER EXPENDITURE
Actual: 9500000 MXN milliones(highest level ever)
Exports platform
Internalmarket
Humancapital
Advanced manufactu
re
Macroeconomic
environment
Mexico’s competitiv
e advantage
s
5 competitive advantages
18
Labor Market
19
Labor Force: 52 milliones
Expected Labor Force (by 2020): 83 milliones
Labor Force Chart – Source: Trading Economomics
Quality of Mexican labor force
Source: IMD Competitiveness Yearbook, 2012
Brazil
China
Indonesia
South Korea
India
Russia
Mexico
- 1.00 2.00 3.00 4.00 5.00 6.00 7.00
3.80
4.44
4.83
5.18
5.73
5.85
6.02
Rank
Exports platform
Internalmarket
Humancapital
Advanced manufactu
re
Macroeconomic
environment
Mexico’s competitive advantages
5 competitive advantages
21
22
Most competitive total costs
Mexico’s ranked 11th in terms of Economies of Scale Availability
23
MEDICAL DEVICES• We are the largest exporter in Latin America and main supplier to the US.
AUTOMOTIVE AND AUTOPARTS• 8th producer and 4th exporter globally of new light vehicles in the world.
AEROSPACE• Mexico is the 6th supplier to the American aerospace industry.
ELECTRIC-ELECTRONIC• Leading flat television screen exporter in the world.
Source: FEMIA/ GTA/ AMIA/ OICA. .
370 billions in exports50% medium and high tech
manufactures
We are leaders in key sectors
ProMéxico’s strategies
24
25
What Do We Offer in ProMéxico?
ProMéxico
Boosts activities aimed to present an overview of international business and trade. It also seeks to encourage enterprises and strategic sectors to reach international markets and promote the country's image.
Assists clients to reach a specific goal, through training, personal assistance or consulting.
Brings companies together and link them to private or public organizations and academia, among others, with specific goals that are usually project-related.
Simplifies the execution or increases the appeal of a project, whether for export, FDI or internationalization, through incentives, studies or by opening markets.
Development of programs and projectsDCC/ ACT Model/ Softlanding/ Aftercare/ Roadmaps/ Clusters articulation/ MOMA/ PROCEI
