Dadoo

Mexico

Largest Economies by GDP PPP

For the past 25 years, the country’s economy has been rapidly liberalized and is now well positioned for its continued growth:

  • Internal Changes - include the privatization of  key sectors and industries, currency and inflationary stability, and an overall significant reduction in the role of government in business.
  • External Changes - such as major import-duty reductions and the promotion of Foreign Direct Investment (FDI) have distinctively inserted the country into the core of global business. Free trade agreements have been signed with over 42 nations, including NAFTA and  the European Economic Community.

Thus, massive FDI and international trade have resulted.

Mexico

Commencing with the year 2000 presidential elections, a healthy political balance was reached after 7 decades of one-party rule. Such alternancy was the logical result of economic liberalization and greater accountability demanded by society. This has translated in a solid platform for promoting the country’s sustainable growth.

Still, investors should be aware of the many challenges that lie ahead, most notably in the areas of social development, including education, health, employment, justice and growing insecurity. These are major and will take decades to resolve. Areas of hurdles in the business sector include breakup of private / public oligopolies; fostering a culture of respect for consumers and society. As has been seen in many countries throughout history, long term economic stability cannot be attained without social justice.

The international investment community has now clearly recognized the country’s economic and political achievements, resulting in Investment Grade ratings since 1999. As result, Mexico has risen into a distinct category, above many of its Latin American and Asian competitors of the late 1980’s.

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