Mexican Market Spotlight:
Mexico boasts the 14th largest economy in the world and is second in Latin America with a population of 116 million, and GDP of US$ 1.2 trillion. Structural reforms in Mexico have recently been approved in fields such as energy, telecommunications, fiscal and labor. These reforms are attracting foreign investors and triggering economic development.
- The expected growth rate by Banxico (Mexico's Central Bank) is 2.9% for 2015.1
- Mexican per capita consumer spending is forecast to increase by 30% by 2017, compared with a regional growth average of 27% reported in the 2014 PwC Retail report.2
- Population forecast to increase from 119.7 million in 2014 to 128.1 million by 2020. GDP per capita is expected to grow 14.9% by 2020.3
The average annual household income in Mexico has steadily increased to US$13,085 in 2015.4 Households earning more than double that amount, about US$35,467, increased over 200 thousand during the same period as shown in INEGI's (National Institute of Statistics and Geography) last economic census.
Mexico also has one of the lowest total manufacturing costs5 among emerging economies, approximately 25% lower than the US. The country is a manufacturing powerhouse, exporting 80% of its manufactured goods, and has more than 745,000 university students specializing in engineering and technology. Mexico's macroeconomic financials are sound with reserves of US$163 Bn, almost three times its foreign debt.6
Mid-sized businesses in Mexico that are involved in global supply chains or are considering expanding into overseas markets themselves gain competitive advantages with commercial banking solutions that simplify domestic growth and expansion into international markets. Citi Commercial Bank's unique global reach and local expertise provides access to experienced Relationship Managers in Mexico's leading trade partner countries, including the U.S., China and South Korea.
1 Banco de México / Mexico's Central Bank
2 PricewaterhouseCoopers 2014 Retail Report
3 International Monetary Fund
4 OECD Better Life Index
5 According to Alix Partners
6 Source: Standard and Poors