2. Main Industry Sectors
Economic Overview
Foreign Direct Investment [FDI]
FDI Government Measures
Country Strong Points
Country Weak Points
Foreign Trade Overview

3. Agriculture accounts for approximately 4% of the GDP and employs
13.5% of the active population, however, the scarcity of credit
continues to penalize this sector.
Mexico ranks amongst the world's largest producers of coffee, sugar,
corn, oranges, avocadoes and limes.
Mexico is the world's 5th biggest producer of beer and its number
two exporter.
It is amongst the world's leading producers of many minerals,
including silver, fluorite, zinc and mercury, and its oil and gas
reserves are one of its most precious possessions: Mexico is the
world's fifth largest producer of oil.
The oil company PEMEX is the second most powerful company in
Latin America, according to the industry journal América
Economŕ­a.
Cattle farming and fishing are also important economic activities.

4. The aerospace sector has grown sharply in the last five years, due to
the presences of almost 190 companies, such as Bombardier, Goodrich,
the Safran group and Honeywell, which together employ 30 000 people.
Mexico is also one of the 10th major car producers.
The hi-tech, information and software development sectors are also
experiencing a real momentum, driven by the quality of the workforce,
clusters and low operating costs, which allow for the establishment of
call centers.
The tertiary sector contributes to around 60% of the GDP and the
construction sector is coming up again due to real estate investments.

5. Mexico became the 12th world economic power. Although the
GDP fell sharply in 2009 (-6.5%), the GDP is predicted to rise by
about 4% in 2010.
Resumption of exports, especially car sales and US tourism are
encouraging signs.
The general economic outlook is relatively good. According to
the different rating agencies, Mexico enjoys the investment grade
status.
The Doing Business 2010 report considers it the best country
to do business in in Latin America; nevertheless, the growing
security issues discourage investments and tourism.
The corruption and inefficiency of Mexican bureaucracy
are also among the country's weaknesses

6. Mexico is one of the emerging countries most open to foreign direct
investment.
Over the last few years, its competitiveness has been slowed down due
to the increase of organized crime and a lack of reforms in the energy,
professional and financial fields.
The areas where foreign investments are concentrated the most are the
border towns with the United States (where assembly factories are
located), as well as the capital.
The Yucatan peninsula continues to receive foreign investments thanks
to its tourism appeal.
These investments come especially from the United States
and Spain (mainly from the banking sector).
The sectors receiving significant foreign investments are
finance, automobile industry and electronics services.

7. The major investors in Mexico were the Netherlands with 7.461 million
dollars, or 52% of total FDI and the United States with up to 30% for the
year 2010.
This reflects Heineken's significant acquisition of the beer operations
of the Mexican group Femsa. Spain, on the other hand, has significantly
reduced its investments in the country.
The 14.362 million dollars of FDI in 2010, Mexico's appeal has again
increased, compared to the last two years.
According to the 2010 global competitiveness report of the
World Economic Forum, Mexico ranked 28th in terms of
foreign investor confidence.

8. The Mexican Government has created an open and safe environment for
foreign investors.
The recently undertaken economic policies should allow investors to
manage the safety of their operations despite the unfavorable global
external environment.
Public treasury funds have been made available to private companies
that have been heavily affected by the crisis.
In November 2008, the Mexican government saved the Vitro company,
one of the world's biggest glass producers, which was having liquidity
problems because of its debts.
The amount disbursed to save it was evaluated at 100 bn $.
The cement corporation, Cemex, in turn registerd a 15 bn $
debt, a debt which is higher than the value of the company,
due to the collapse of the world construction sector.

9. Mexico forms a bridge between North America and Latin
America due to its geographical location;
Mexico has an extensive variety of natural resources allowing
for the development of all types of industries at competitive
prices;
Mexico is very open to direct foreign investments;
Labor costs are not high and in general, there is a skilled
labor force;
Positive structural reforms have been made during the
current presidential term;
Mexico is the world's 8th tourist destination.

10. The country depends excessively on its partnership with the
United States;
There is a high level of corruption;
During the last few months, violence has increased especially the
drug cartels;
The country is encountering significant structural problems
(economic and social).

11. Mexico is one of the countries that most depends on foreign
trade. Foreign trade represents around 60% of its GDP.
Mexico has 11 free-trade agreements with 43 countries of the
world.
It is a member of NAFTA - the free-trade agreement that
unifies the United States, Mexico and Canada, since 1994.
The country signed a free trade agreement with the European
Union in 2000 and a commercial agreement with Japan came
into force in April 2005.

12. The United States buys 80% of Mexico's exports. Its main
export partners are the NAFTA and the European Union.
The main export goods are electrical and electronic
equipment, vehicles, mineral fuels, oil and machinery.
Its three main import partners are the NAFTA, China and
Japan.
It mainly imports electrical and electronics equipment,
machinery, vehicles and plastic products.
In 2010, Mexican exports increased by 32% on the previous
year.
During the same period, international car sales increased
sharply by 76.8%, which may also represent a threat of
dependency for the Mexican economy.

13. Visit us to download for related reports
Market Opportunities of products and Services in
Mexico
Export and investment sector opportunities in Mexico
Overview of Trade Regulations, Customs and Standards
in Mexico
Mexican Investment guide for beginners
Business and Project Financing in Mexico
Business Travel Advisory in Mexico

14. Country List
 China  Australia
 Mexico  Germany
 United States  France
 India  Spain
 Canada  South Korea
 Russia  Vietnam
 Hong Kong  Saudi Arabia
 Colombia  Poland
 Brazil  South Africa
 Turkey  Nigeria
 Indonesia  Argentina
 Egypt  UAE
 Singapore  Netherland
 United Kingdom  Sweden
 Italy  Thailand
 Japan  Israel
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