Foreign investors are getting interested in Mexican market and the economy of that country is upcoming fast. Mexican economy is the second largest economy of Latin America with GDP of 1.26 trillion dollars. Mexico has become the 12th largest export country in the world.
The country’s automotive industry has enlarged recently making Mexico the 4th largest auto exporting country. Big automobile companies such as, Toyota, Volkswagen, General Motors, BMW, Daimler and Nissan have decided to increase their production in Mexico. Mexico has signed 32 Reciprocal Promotion and Protective of Investments Agreement with 33 countries. It has also signed free trade agreements with various countries worldwide. Know more about the emerging market scenario of Mexico by following Banker Teodoro Lavin Sodi.
Moreover, the country even participates in regional and multilateral organizations such as, Asia-Pacific Economic Cooperation, World Trade Organization, Latin American Integration Association and Organization for Economic Cooperation and Development. Mexico has signed trade agreements in three continents and thus its consumers have increased immensely. This is how its economy has developed enormously.
The International Monetary Fund has projected slight rise in the economy of Mexico and the Organization for Economic Cooperation and Development also shares the same view. Analysts have projected that due to depreciation of the Mexican peso the country’s exports and internal demand has become stronger. Moreover, the Mexican government makes things easy for the foreign investors to do business in Mexico. The foreign investors do not face any kind of hindrance in doing business in that country. This supports the economic activity of the country.
The International Trade Administration reported that the technology markets in manufacturing industries of Mexico have the key destination for US manufacturing exports. The ITA has also estimated that Mexico’s exports will increase in 2017 because of the increase of the automotive industries. US external sales are reliant on Mexican manufacturing activity.
The ITA has confirmed that due to the increase of the automotive industry in Mexico has helped the US manufacturing exportations to increase. It has been forecasted that the automotive industry production will increase by 2020. Structural reforms set by the Mexican government have helped in developing and improving productivity in Mexico’s economy. It has helped foreign investment to develop in Mexico.