Mexico, the new superpower in the next 10 years

Global indicators suggest that Mexico will position itself as a leading economy in the next 10 years.

With a strategic geographic location, tax incentives, excellent supply chains, competitive costs, and a talented and young workforce, Mexico has become the 15th largest economy in the world , and consequently, one of the most attractive emerging countries for foreign investors.

According to the World Investment Report 2022, published by the United Nations Conference on Trade and Development (UNCTAD), in 2021 our country ranked as the 10th global recipient of foreign direct investment (FDI) and 5th among developing economies.

This data is quite encouraging. It's important to remember that during the pandemic, many companies went through a period of great uncertainty, instability, and slow growth.

Mexico, a superpower?

Despite this, Mexico has once again proven to be one of the world's most attractive and open countries for imports and exports. This explains the recent surge in cash flow within the country and its leading role in the region.

According to data provided by the Bank of Mexico , in 2021 exports of goods and services from Mexico totaled more than US$465 billion, equivalent to 49% of the national GDP , with Mexican production fully integrated into global value chains. Furthermore, in Latin America, Mexican exports represented 37.9% of the region's total in 2021, solidifying its position as the leading exporting power. Mexican exports of medium- and high-technology manufactured goods stand out in particular, accounting for more than half of the region's total.

This growth is not difficult to understand given that Mexico has many factors working in its favor, in addition to enormous human potential and ample resources to become a leading global economy . Based on this premise, it is important to mention some of the strengths that give us a unique and exceptional growth potential.

First, we must mention Mexico's key position . Our territory's proximity to the world's largest economy—the United States—generates an economic spillover of trillions of dollars in products and an increasing number of services.

Related to the above, Mexico is one of the largest exporters to the United States ; the trend shows that the U.S. is importing less and less from China, relocating its production to neighboring Mexico. In fact, today, Mexico is the United States' second-largest trading partner.

Thirdly, it's important to highlight the high demand for talent and specialized human capital. Currently, our country is a primary supplier of professionals . The reason? The creativity and capabilities of Mexican talent lead companies worldwide to invest heavily in them.

Another key point is that we have trade agreements in place that allow American companies to operate maquiladoras in Mexico. As a result, more and more Americans are buying property and land in Mexico, thus raising the quality of life and increasing the country's property values.

Finally, but no less importantly, the enormous consumption within the domestic market must be highlighted. In 2021, Mexico's gross domestic product (GDP) amounted to approximately $1.322 trillion . It is estimated to reach $1.646 trillion in 2027. Likewise, there is an ever-increasing demand for higher quality products and services, a demand that absolutely requires digital adoption.

You might also be interested in: Paypal, 12 years of online shopping in Mexico

Digital transformation in the country

Regarding digital transformation in the country, according to data from LNS Research , 29% of companies have digital transformation programs in pilot phases, 16% have already implemented their digital transformation according to their objectives, 23% have budgeted to start their projects in the next year and 6% plan to do so within the next three years, which shows the importance of these issues.

That said, it's crucial to understand that for an economy to grow, there must be significant levels of consumption . And, as we all know, sales today are primarily generated through e-commerce. Therefore, incorporating technology should be a priority for businesses across all sectors.

In short, Mexico has all the qualities to position itself as a leading global economy. Therefore, it is crucial to understand that a country with greater strengths in innovation, more demanding consumers, more dynamic businesses, a better-trained workforce, and a proactive government will always be better prepared to face the challenges it encounters. Above all, it will be better equipped to remain competitive and stand out in the global market.

[hover_color align=»center» background=»» background_hover=»» border=»» border_hover=»» border_width=»0px» padding=»60px 60px» link=»https://selfish.com.mx/servicios/paginas-web/» target=»» class=»cta-blog themecolorbg» style=»»] Ready for the change? Contact us! [/hover_color]