Mexico

Located between the USA and South America, Mexico is rich in history and tradition. The largest Spanish-speaking country in the world and the second most populated in Latin America, it brings significant opportunities for multinational businesses.

 

Welcome to Mexico

Mexico’s considerable growth potential, and large population with a high proportion of young workers, also help position the country as an ideal international business hub.

Often ranked as one of the world’s top emerging markets, the country’s enviable climate, picturesque coastlines, world-renowned cuisine, deep cultural roots and relatively low cost of living all add to its appeal.

Grupo Financiero HSBC is one of the leading financial and banking groups in Mexico. Our 16,000 employees operate from over 980 branches, offering banking services to more than 8.5 million customers throughout the country.

Local knowledge is vital to help tap into the vast potential that Mexico has to offer. HSBC’s strong on-the-ground presence in the country, alongside 150 years’ experience and a wealth of global capabilities, make it the perfect partner to enable international businesses to thrive.

We look forward to welcoming and doing business with you!

 
Nuno A Matos Chief Executive Officer, HSBC Mexico

Head office address: Ave. Paseo de la Reforma 347, Col. Cuauhtémoc, 06500 Mexico DF, Mexico

Essentials

Population
124 million1
Size
1,964,375 sq km
Main languages
Spanish is the official language, though English is widely spoken
Capital city
Mexico City
Other major cities
Guadalajara, Puebla, Monterrey, Tijuana, Querétaro, Juarez
Currency
Mexican Peso
Dialling code
+52
GDP
USD9,707 per capita2
Top exports
Manufactured goods, vehicles, automobile parts, oil and oil products, silver, fruits, vegetable, coffee, and cotton3
Top imports
Metalworking machines, steel mill products, agricultural machinery, electrical equipment, automobile parts for assembly and repair, aircraft, and aircraft parts3
Unemployment rate
3.4%2
Corporation tax
30%4
Typical office hours
8.00am – 6.00pm, Monday to Friday
Time zone
UTC -8
Emergency numbers
911 (police, fire and ambulance)

Mexico: A growing international hub

  • Consistent growth

    Mexico has been a stable economy for a number of years. It has maintained consistent slow growth with a variety of reforms to manage debt and invite foreign investors for an increasingly open economy.

  • Well connected

    Mexico is connected to 60% of the world’s GDP with overland access to the US and Central America as well as to the East and West with ports in both the Pacific and Atlantic oceans.

  • Focus on innovation

    Mexico has increased its research and development (R&D) budgets by 42% in less than a decade and offers tax incentives for R&D spending and investment.

  • Manufacturing leader

    Mexico continues to grow its global manufacturing base in a wide range of industries including automotive, flat-screen TVs, computers and telephones due to its relatively low cost of labour, plentiful industrial space in the North and attractive government incentives.

  • Ideal trading partner

    Trade agreements and partnerships that extend around the world, and ongoing conversations with more countries, makes Mexico an open and ideal trading partner.

Ranked

# 49

for ease of doing business (in a survey of 190 measured economies by The World Bank)

Country profile

Mexico is known for its rich history, strong cultural blend and distinct cuisine. But it’s also a significant international trade hub and manufacturing powerhouse.

Mexico has signed 12 Free Trade Agreements (FTAs) with 45 countries around the world which are members of the Trans-Pacific Partnership (TPP). The country also has 32 Reciprocal Investment Promotion and Protection Agreements (RIPPAs) with another 33 countries and an additional nine agreements within the scope of the Latin American Integration Association.

Mexico can provide a connection to over one billion consumers and 60% of the world’s GDP.

The country still has internal and external challenges. At home, there is a high rate of poverty, a low percentage of women participating in the workforce and some ongoing corruption and crime. Externally, there is uncertainty about future trade policies with the US.

All of that aside, the government has been successful at containing inflation and has put reforms in place to attract foreign investors, which has led to steady growth and a positive outlook. Mexico’s economy is divided into four geographic regions – the North, North-Central, Central and South regions.

Read on to discover more about the dos and don’ts of doing business in Mexico. Also find out how trading in or with the country could help boost the future growth of your business.

5 reasons to do business in Mexico1

  1. Well-educated workforce
    Mexico has a young and well-educated workforce, with a median age of 27.5 years.
  2. Low labour costs
    The low cost of labour in Mexico, combined with higher productivity, is attractive to many manufacturers.
  3. Gateway to consumers
    Mexico has the Freest Trade Agreements of any country, providing a gateway to one billion consumers.
  4. Ripe for foreign investment
    Government reforms focused on encouraging foreign investment have been introduced in Mexico.
  5. Encouraging growth
    Mexico has the greatest estimated economic growth rate in Latin America, projected at 2.4% for 2018.

5 key challenges2

  1. 1

    Reliance on the US economy

    The US is Mexico’s main trade partner, its biggest market for exports and its key supplier. As a result, Mexico’s economic stability and growth depends a good deal on the state of the US economy.

  2. 2

    Crime rate

    While violence and organised crime has been on the decline in recent years, there are still concerns. This includes a rise in the theft of gas and oil from Mexican pipelines and a 37% increase in highway freight robberies.

  3. 3

    Gaining permits

    There are 10 procedures involved in getting a construction permit, which takes around 69 days. Connecting to the water and sewerage systems alone is a month-long process, and obtaining land-use and feasibility certificates can be complicated.

  4. 4

    Electricity access

    Mexico is ranked 130th by the World Bank and the International Finance Corporation (IFC) for ease of getting electricity. The process requires a number of steps, including submitting applications for certificates and inspections from the Comisión Federal de Electricidad.

  5. 5

    Paying taxes

    Although there are only six payments, it takes an average of 337 business hours each year for businesses to pay their taxes. The corporate tax, which is 30%, takes 155 hours alone.