a n opportunity for business august 26 th, 2015. mexico will become the 8 th largest economy 2...
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AN OPPORTUNITY FOR BUSINESS
August 26th, 2015
Mexico will become the 8th largest economy
2Source: ProMéxico with information from Bloomberg and The Economist.
China
US
India
Indonesia
Japan
Germany
Brazil
Mexico
UK
France
2050
Economy moves up rankings
Economy moves down rankings
Economy remains at rankings
105,916
70,913
63,842
15,432
11,367
11,334
10,334
9,826
9,812
9,671
Mexico: a rising global star
3Source: ProMéxico, with information of BCG.
Source: ProMéxico with information from Bloomberg. *Figures to March, 2015, Data from JPMorgan Chase & Co reported by the IMF in the Global Financial Stability Report (april 2015), p. 14
Mexico leads bond benchmarks
4
Mexico Indonesia Turkey South Africa Brazil Russia Colombia
18.9 33.3 46 45.3 60.5 96.9 167
85 92 117 73 237 354 85
Exchange rate(%)
10-year bondUSD (pb)
Just 3 sovereign nations in recent history have issued 100-year bonds: China,
in 1996; the Philippines, in 1997; and Mexico in 2010,
2014 and 2015.
10 main FDI destinations
5Source: ProMéxico, with information from A.T. Kearney.
United StatesChina
U.K.Canada
GermanyBrazilJapan
FranceMexico
Australia
6
Mexico: 2nd largest investor in Latin America
Brazil Mexico
Chile
Colombia Argentina
Venezuela
Other
46,345
96,076
89,226
33,985
13,162
12,768 33,184
Source: ProMéxico with data from UN-ECLAC based on official data and estimates to May 2015.
(FDI flows in Latin America and the Caribbean 2006-2014, in millions of dollars)
We are committed to free trade
7
Our FTAs give privileged access to 1.2 billion consumers.
With the TPP, Mexico will increase its presence in Australia, Brunei, Malaysia, New Zealand, Singapore and Vietnam.
Source: ProMéxico with information of Brazil: OAS; China: Chinese Ministry of Commerce; Colombia: Colombian Ministry of Commerce; United States: Office of the US Trade Representative; Chile: Direcon; Mexico: Ministry of Economy.
6 economic complementation agreements
TPP
FTAs with 45 countries
INTERNATIONAL TRADE REPRESENTS 63% OF OUR GDP
Customs raise 66% of the VAT in the country.
Close to 45,000 foreign trade operations in Mexico per year.
28 thousand heavy-duty vehicles involved in foreign trade of goods.
Over 30 stakeholders: Government, exporters, importers, carriers, etc.
Source: ProMéxico with information from the General Administration of Customs and the Mexican Ministry of Economy.8
9
Pacific Alliance
Departure from Valparaíso
Arrival to Singapore
Arrival to Guadalajara:10th of February
Arrival to Manzanillo:9th of February
• The transfer time was reduced (between 5 to 8 days) and shelf life was increased.
24 Jan
13Feb
Arrival to HK:12th of February
Logistics Platform of the Pacific Alliance
10
11
Mexico: A leading exporter of high-tech manufactures in Latin America
1 out of every 3
exports in Latin
America have a
Mexican origin
Mexico
73.5%
Other Latin AmericanCountries
26.5%
Advanced manufacturesSource: ProMéxico with information from the GTA.
Exports of Medium and high technology manufactures as percentage of the GDP
(2014)*
A sophisticated economy
12
25.5%24.2%19.4%
13.1%11.6%
1
2
3
4
5
Germany
South Korea
China
Mexico
France
Source: ProMéxico with information from IHS Connect – Global Insight. / * Only G20 nations.
Worldwide producer of light vehicles(3.22 millions of units).
of the top leading OEM’s are located in Mexico.
Occupied workers: 66,017.The automotive industry in Mexico accounts for:3% of the National GDP.
17% of the manufacturing
GDP.
20% of the FDI.
32% of Mexican total exports.
Exporter of light vehicles(2.64 millions of units).
More than 300 Tier 1 suppliers established in Mexico.
World´s largest vehicle producer in the world (3.39 million units).
7th 100%
4t
h
Key Indicators for Mexico (2014)
13Source: ProMéxico with information of AMIA, OICA, Ministry of Economy, INEGI, ANPACT and the GTA.
7th
14
Sectors to promote in Latin America
Renewable energies
Biotechnology
Clean technologies
ICT
Nanotechnology
Infrastructure fortransportation
New materials
Broadbandinfrastructure
Source: ProMéxico, with information of the survey conducted by the Economic commission for Latin America and the Caribbean, ECLAC.
Priority index
Mexico4 State Visits7 Missions1 Agenda1 Seminar1 Multilateral reunion2 Pacific Alliance events1 Summit
Argentina1 Mission
Brazil1 Mission2 Seminars
Paraguay1 Agenda1 Secretary of Foreign Relations Agenda
Panama1 State Visit.1 Fair
Dom. Rep./Haiti
1 Mission
Pacific Alliance
5 Missions3 Fairs
4 Pacific Alliance events
1 Summit1 Event
Costa Rica2 Missions
2 Summits
1 Summit
El Salvador1 Mission
Guatemala1 Mission
Caribbean1 Mission
Nicaragua1 Mission
1 Seminar
ProMéxico’s activities in LATAM (Q2 2015)
16
Relevant events in Latin America 2015
Lab4+(Puebla,
October 5/6th)
Ferretexpo(Guatemala,
October 15-18th)
Outsource LAC(Jalisco,
November 11-13th)
LAC Flavors(Paraguay,
September 15-17th)
Month of the Pacific
Alliance (Milan,
October 2015)
FIHAV(Cuba,
November 2-7th)
Pacific Alliance
IDB
Women Leaders of the Pacific Alliance(Mexico City, October 23th)
International fairs
Cancun Forum 2015
buyers from 27 countries
of the Caribbean Basin.
Mexican
exporting
firms
500 businesspeople
1,500 business meetings
From the 9th to the 11th of September, 2015 Iberostar Hotel, Cancun, Quintana Roo.
30070
China-LAC Business Summit
18
October 13-14th, 2015
Palacio de la Cultura y la Comunicación.
Guadalajara, Jalisco.
Mexico: venue of the X Americas Competitiveness forum
19
