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WHY INVEST IN MEXICOWHY INVEST IN MEXICO

Introduction

Capital Mexico City

Area 1,972,550km2

Official Language Spanish

Currency Peso (Mexican)

GDP (2014) USD 1282.72 billion

GDP Per Capita (2014) USD 10,361

Population 122 million

Literacy Rate 93.1%

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SAFE HAVEN FORMANUFACTURING

WELL POSITIONEDGEOGRAPHICAL

LOCATION

MACROECONOMICENVIRONMENT

Factors

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Macroeconomic Environment

• 

14th largest economy in the world; 2nd largest in Latin America

•  15th largest exporter in the world

•  International reserves of US$163 billion; almost 3 times its foreign debt

•  Low Country Risk (EMBI +157)

•  Foreign currency of BBB rating, Local currency of A- rating

• 

Ease of starting business: 6 procedures, takes 9 days. Costs 19% ofincome per capita

•  Ranked 36th out of 189 economies in World Bank Group’s Ease ofDoing Business

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Well Positioned Geographical Location 

•  Wide networks of roads and railroad system connects its northern andsouthern borders, establishing connections between the UnitedStates and Guatemala and Belize

•  Eastern and western coasts connect the Pacific Ocean with the Gulf

of Mexico and Caribean

•  Network of 45 Free Trade Agreements (FTAs) and over 1 billionconsumers

• 

Interlocutor between United States and South America

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For Singaporean Companies 

Gateway to largermarkets in North and

South America

Low cost ofmanufacturing

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•  Deeply integrated with North America’smanufacturing supply chain

• 

An increasingly important energy hub, domesticprivate companies can serve as local partners forforeign investment

Gateway to larger markets in North and South America

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Low cost of manufacturing

•  Ranked the most competitive manufacturingdestination globally – due to its young, productiveand affordable labor force (Alix Partnersmanufacturing cost index)

•  Phenomenon “nearshoring” which validates this

trend – growing list of US companies are scalingback their China operations and heading to Mexico

to manufacture goods