7 facts about Mexico’s economy that will surprise you
Puerto Vallarta based Lifestyle, Travel and Real Estate website “Good Life Puerto Vallarta” recently featured an opinion piece describing 7 surprising facts about the economy in Mexico, that you will not read on Fox News… check it out.
You know that the beaches and the people of Mexico are very warm. What you may not know is that the economy of Mexico es muy caliente (sizzling hot). Consider:
- A strategic location
- Economic growth rate
- Advanced manufacturing
- Excellent supply chains
- Fiscal stimulus
- Talented, young workforce
With all of this going for it, the economy of Mexico has some surprising highlights. Data shows that this is the opinion of many. Luis Videgaray is an MIT graduate and Mexico’s Finance Minister. He’s the brains behind current economic reforms. He says the reforms may take years to kick in fully, but there are some surprising highlights.
First of all, Mexico is becoming a powerhouse of manufacturing. The country is on track to become the United States’ No. 1 source of imported cars. As a major auto manufacturer, 89 of the world’s top 100 auto parts makers have production in the country. In 2014, more than 10 billion dollars invested in this sector alone. Investors were Audi, Mercedes Benz, Kia, BMW, and Nissan. This year, Ford announced a 1.6 billion dollar investment in a plant to produce a rival hybrid to Toyota’s Prius.
The electronics industry of Mexico has grown at a fast pace within the last decade. Mexico has the sixth largest electronics industry in the world. There are almost half a million (451,000) students enrolled in electronics engineering programs. 114,000 electronics engineers enter the Mexican workforce each year
Mexico is flying high in the aerospace sector. Many multi-national companies are here because of:
- The talent and capabilities of the people
- Infrastructure development.
Today, there are 287 companies and R+D centres. The sector generates more that 45,000 high quality jobs. Mexico is the meeting point of the world’s two main aerospace manufacturing corridors, both in North America. Also, access to Asian and European markets make it the aerospace manufacturing center of the Americas. Exports amounted to over 6.3 billion dollars in 2014. That’s a 20% growth year over year for the past decade.
Finally, many more companies are making commitments of close to $10 billion in operations in Mexico. Mexico’s world exports in 2014 totalled $380.8 billion.
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