Mexico: a leading economy A country with competitive sectors - - PowerPoint PPT Presentation

Competitive advantages for investing in Mexico Mexico: a leading economy A country with competitive sectors

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ProMéxico’s strategies

Competitive advantages for investing in Mexico

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Ex Exports plat platform Int nternal mar arket Hum uman cap capital Advan vanced man anufacture Mac acro roeconomic env nviro ronment

Mexico’s co competit itiv ive ad advantages

5 competitive advantages

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Forecasts

2.000 4.000 6.000 8.000 10.000 12.000 14.000 16.000 18.000 EU China Japón Alemania Francia Reino … Brasil Rusia Italia India Canadá Australia España México Corea …

Million dollars 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 place

2013 World’s lar larges gest economies economies

14th place

Goldman

• ldman Sach’s For
• recas

ecast Gross Domestic Product (Billion USD) 6 Gross Domestic Product (Billion USD)

Goldman Sachs estimates that Mexico will be the

5th th largest economy by

2050. According to Accenture, Mexico will be one of the

Big ig Six ix in 2025.

According to HSBC Mexico will be the 8th

th largest

economy in the world by 2050.

USA China Japan Germany France UK Brazil Russia Italy India Canada Australia Spain Mexico South Korea

$0 $50 $100 $150 $200 $250 $300 $350 $400 0% 20% 40% 60% 80% 100% 120% 140% 160% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Billion dollars Percentage of inflation

Manufactures Oil Primary Inflation

Solid macroeconomic environment

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Source: 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*)

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Source: Ministry of Economy. General Directorate of Foreign Investment. */ Figures to September 2013.

Record-high

MUSD

15.453

35.188

• 5.000

10.000 15.000 20.000 25.000 30.000 35.000 40.000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

9 A3 Baa1 Baa3

BBB+ BBB+ BBB BBB BBB- BBB+ BBB+ BBB BBB 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 Internal market Human capital Advanced manufacture Macroeconomic environment

Mexico’s competitive advantages

5 competitive advantages

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8 12 17 20

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Number of countries

Our FTAs give privileged access to 61% of the world’s GDP Number of countries with privileged access*

We are committed to free trade

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Sources: Brazil; China: Colombia:; United States: ; Chile: Direcon; México: Ministry of Economy.

Easy access to the world

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Days port to port

Destinatio n German y Brazil China Colombi a Korea US India Mexico Poland Turkey New York 11 15 32 6 21

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6 12 16 L.A 25 23 18 10 17

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4 26 28 Rotterdam

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32 15 33 11 20 15 1 10 Yokohama 35 35 4 24 3 15 17 18 36 27 Río de Janeiro 17

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12 34 15 24 16 18 19 Shanghai 32 32

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2 17 11 20 33 24 Shenzhen 30 30

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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

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A country with great infrastructure

Fuentes: SCT/ US Department of Transportation.

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A country part of NAFTA

Exports platform Internal market Human capital Advanced manufacture Macroeconomic environment

Mexico’s competitive advantages

5 competitive advantages

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Demographics on our side

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Population: 122 milliones

Domestic Market: main features

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Consumer 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 Internal market Human capital Advanced manufacture Macroeconomic environment

Mexico’s competitive advantages

5 competitive advantages

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Labor Market

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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

3,80 4,44 4,83 5,18 5,73 5,85 6,02

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2,00 3,00 4,00 5,00 6,00 7,00

Brazil China Indonesia South Korea India Russia Mexico Rank

Exports platform Internal market Human capital Advanced manufacture Macroeconomi c environment

Mexico’s competitive advantages

5 competitive advantages

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Most competitive total costs

 Mexico’s ranked 11th in terms of Economies of Scale Availability

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
• f 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 exports 50% medium and high tech manufactures

We are leaders in key sectors

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ProMéxico’s strategies

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What Do We Offer in ProMéxico?

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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

• r by opening markets.

Development of programs and projects

DCC/ ACT Model/ Softlanding/ Aftercare/ Roadmaps/ Clusters articulation/ MOMA/ PROCEI

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www.oscar.camacho@promexico.gob.mx