Horizon Mexico

Mexico is establishing itself as a driving force in the global economy, attracting billions in foreign direct investment each year. Thanks to its strategic location between the Americas, a dynamic domestic market, abundant natural resources, and a skilled workforce, it has become a key industrial hub. Its diversified economy (automotive, aeronautics, agribusiness, electronics, etc.) offers strong potential for international companies. Industrialization is now spreading to new regions such as the Yucatán and Baja California, illustrating a rise in territorial power and confirming Mexico's role as a leading global industrial platform.

Lana Ravel – Regional Manager for Latin America & the Caribbean – Bpifrance

KEY FIGURES

• Population : 133,4 million inhabitants
• GPD : 1853 billion (in USD)
• 10ème world economic power
• Currency : Mexican Peso (MXN)
• Exchange rate regime : floating

COUNTRY RISKS

• External position: Mexico is particularly vulnerable to US protectionist measures. 80% of its exports go to the United States.
  United, or 27% of the country's GDP in 2024.
• Public finances: The public deficit reached a record -5,7% of GDP in 2024. The government is aiming for a reduction to -3,9% in 2025, an uncertain objective given the economic context.
• Vulnerability of the banking sector: The banking sector is profitable and complies with international standards in terms of solvency. The rate of receivables
  doubtful remains limited, around 1,9% in December 2024.
• Climate vulnerability: Mexico relies heavily on fossil fuels for its electricity generation, but aims to increase its share of renewables by 2030. The country remains vulnerable to climate change, particularly in the face of growing water shortages.

AREA OPPORTUNITIES

• Political and social stability President Claudia Sheinbaum is operating in a tense economic climate marked by American protectionism. However, she has strengthened her popularity thanks to the success of her trade negotiations with the United States.
• Natural resources : Mexico has rich natural resources (oil, gas, silver, lithium) and is banking on wind and solar power to develop sustainable projects as part of the global energy transition.
• Strategic position: Mexico benefits from privileged access to the North American market through the USMCA agreement, strengthening its role as an export platform.
• Business climate: Mexico benefits from a legal framework conducive to investment and some thirty bilateral agreements. Its proximity to the United States and Canada, reinforced by the UMSCA, constitutes a major asset, despite an uncertain short-term trade environment.

To discover the full content, check out our edition Horizon Mexico.