Mexico is the second largest economic system in Latin America and regardless of unfavorable international market situations, continues to bounce again strongly from the COVID-19 pandemic.
The Mexican economic system grew three % final yr on the again of booming tourism and a gentle improve in automotive exports. These are optimistic indicators for the expansion in Mexico enterprise alternatives in 2023.
To achieve a aggressive benefit and take advantage of these enterprise alternatives, it’s essential to perceive the newest authorized, accounting, and tax compliance guidelines in Mexico.
Let’s study these components and take a look at why Mexico stands out as probably the greatest international locations to do enterprise on this yr.
Why Is Mexico a great nation to do enterprise in?
Mexico is called the gateway to Latin America and is known for its tourism, tradition, delicacies, and variety. Its economic system is the 15th largest in the world in GDP phrases and the thirteenth largest by buying energy.
It has a rising inhabitants of over 126 million individuals and borders the world’s largest shopper market, the USA of America. In 2022, based on the World Financial institution, Mexico ranked sixtieth amongst 190 economies within the ease of doing enterprise.
Mexico presently has 13 free trade agreements with 50 countries, making it one of the crucial open and aggressive markets on the planet.
It additionally affords vital potential for capital funding, because it ranks eleventh globally by way of offering credit score alternatives to new worldwide companies. What’s extra, the nation’s weaker foreign money supplies better shopping for energy to your Mexico enterprise alternatives.
A highly-skilled expertise pool awaits you in Mexico. Its workforce was ranked ninth finest out of over 60 international locations in ManpowerGroup’s Whole Workforce Index. It scores the workforces of nations on over 200 distinctive components grouped underneath the classes of availability, value effectivity, regulation, and productiveness.
Mexico’s Economic system Minister Raquel Buenrosotro announced in November that “greater than 400 North American corporations have the intention to hold out a relocation course of from Asia to Mexico.”
The Mexican authorities is concentrated on bettering the nation’s infrastructure together with telecommunications, power, and transport sectors.
General, the federal government has a optimistic perspective in the direction of overseas funding providing tax credit, analysis and growth incentives, and duty-deferral applications. All these components make Mexico a lovely location to do enterprise in 2023.
The perfect industries for Mexico enterprise alternatives
Mexico has change into a distinguished manufacturing economic system, specializing within the manufacturing of a number of vital exports, resembling electronics, petroleum, and agricultural merchandise.
Nevertheless, on high of the manufacturing market, Mexico has enterprise alternatives in these 5 industries.
1 – Fintech
The Mexican monetary know-how market has skilled substantial development in recent times. It’s anticipated to extend in 2023 with the rise of cellular gadget transactions.
With the nation’s rising acceptance of know-how, digital monetary instruments like cellular wallets and contactless funds will probably proceed to thrive in Mexico. The 2022 Latam Tech Report predicted using money will lower by 38 % in Mexico, by the top of 2024.
Buyers can discover a various vary of encouraging Mexico enterprise alternatives within the monetary know-how sector.
2 – Tourism
Tourism is a crucial business in Mexico, it presently accounts for eight % of Mexico’s GDP. In 2022, between January and November 58 million worldwide guests entered the nation with the common spending rising by 38 %.
Mexico has one of many fastest-growing tourism industries on the planet. In response to a latest Financial Affect Report (EIR), will generate greater than 2.7 million new jobs over the following ten years.
3 – eCommerce
The Covid-19 pandemic dramatically accelerated the adoption of eCommerce in Mexico. It’s projected to develop yearly by over 16 % till 2027 with over 88 million customers.
New markets are rising whereas established markets have the potential to extend much more. The Mexican eCommerce market affords vital enterprise alternatives in 2023.
4 – Pharmaceutical
Mexico has the second-largest pharmaceutical market behind Brazil in Latin America and ranks within the high 15 globally. By 2025, it’s forecast to develop to over US$30 billion.
It’s dwelling to a sturdy manufacturing business for antibiotics, analgesics, and antiparasitics. Moreover, the native market tends to choose branded merchandise over generics, which makes it a super location for licensing modern medicines.
5 – Automotive
Consultants predict that Mexico might change into the third-largest auto half producer on the planet. Auto half manufacturing in Mexico hit a brand new document excessive of US$107 billion final yr, reflecting a 12.6 % improve from the earlier yr.
As nearshoring actions proceed to develop, the long run appears vivid for the Mexican automotive business in 2023 and past.
What’s the financial outlook for Mexico enterprise alternatives?
The Mexican economic system continues to defy the worldwide downturn with optimistic numbers in 2023. The Worldwide Financial Fund (IMF) raised its forecast for Mexico’s 2023 GDP development in January.
Its sturdy automotive, agriculture, and tourism sectors have helped it keep afloat alongside an increase in nearshoring. Regardless of rising inflation, Mexico´s fee of seven.9 % places it in a greater situation than different Latin American international locations like Colombia, Chile, and Peru.
Now is a good time to be investing in Mexico enterprise alternatives earlier than the market turns into oversaturated.
Biz Latin Hub may help develop what you are promoting
In case you are contemplating doing enterprise in Mexico, Biz Latin Hub is a perfect companion for you.
Now we have a crew of bilingual company help specialists primarily based in Mexico who can give you personalised providers. These providers embody firm formation, accounting and taxation, authorized help, hiring, and PEO.
Our specialists are outfitted to help you in doing enterprise not simply in Mexico, but additionally in the remainder of Latin America. To study extra about our providers and the way we may help you succeed, get in contact with our crew of specialists at present.