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.
Covid-19 latest information
This guide is an accurate reflection of the pre-Covid-19 business environment in Mexico. Please note that due to the current situation, some circumstances may have changed in this country. Figures and data in the guide were last updated in May 2021.
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!
Head office address: Ave. Paseo de la Reforma 347, Col. Cuauhtémoc, 06500 Mexico DF, Mexico
1 World Bank Group, 2019
2 Trading Economics, 2021
3 World's Top Exports, 2020
*Map shows cities of economic significance according to the CIA, 2019
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.
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.
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.
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.
Trade agreements and partnerships that extend around the world, and ongoing conversations with more countries, makes Mexico an open and ideal trading partner.
for ease of doing business (in a survey of 190 measured economies by The World Bank)
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 more free trade agreements (FTAs) than any other country in the world - 12 FTAs with 46 countries. Further to the unsuccessful renegotiation of the North American Free Trade Agreement (NAFTA), in November 2018 Mexico secured the continuation of trade under the United States-Mexico-Canada Agreement (USMCA).
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, but low unemployment, strong remittances and the recovery of real wages will support household consumption. Investment is also expected to strengthen on the back of increased confidence associated with the new trade agreement.
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.
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.
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.
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.
Mexico is ranked 106th 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.
1 UK Government, 2018
2 TMF Group, 2018