HSBC Navigator provides comprehensive insight into the now, next and how for business, representing the views of over 9,100 business decision-makers across 35 markets. This report gives an understanding of how businesses like yours can continue to grow now and in the future.
A country in the midst of change
With the first left-wing president in its modern democracy, a changing domestic economic policy and a shifting trade environment, Mexico is a country navigating change. While there have been recent cuts to public spending and the cancellation of major infrastructure projects, the higher minimum wage and lowering inflation are bolstering consumer confidence and keeping businesses optimistic about their future1.
Opportunity from uncertainty
Mexican companies are more positive about their future than the global average, with close to nine in 10 expecting to grow in the next 12 months and nearly a third anticipating very high growth. Globally, 22% of firms are classed as high-growth companies – these are businesses that expect growth of 15% or more in the next year. The number of high-growth companies jumps to 32% in Mexico.
Businesses don’t just expect to grow in the next year, they’re also foreseeing a lot of change. In Mexico, 66% of companies say their business will change totally or substantially in the next five years, compared to half globally. They’re also increasingly aware of their responsibilities to grow sustainably.
In Mexico, 66% of companies say their business will change totally or substantially in the next five years
|Favourable and regulatory/taxation environment||21%|
|Improvements in logistics and transportation||20%|
|Favourable political environment||20%|
|Optimising working capital||28%|
|Expanding to new digital platforms and channels||27%|
|Quality and availability of skills in your workforce||21%|
90% of Mexican firms project high levels of growth in the next five years.
The main drivers of growth are new markets opening up (54%) and investment in technology (42%).
Businesses are more positive about the outlook for international trade over the next one to two years, compared to the previous two years (93% versus 83%).