According to CNBC,Mexico’s role in the global economy is becoming increasingly clear to investors,offering a wide variety of opportunities that rival those that can be found in any other emerging market.
“For many years,Mexico has been doing all it can to attract investors and has reached a high level of sophistication,” Jose Manuel Ramirez of tax audit firm KPMG told CNBC. “There are really a lot of great possibilities here.”
Over the years,Mexico has transformed from an economy that is small and closed to one that is open and diverse,which has helped make it increasingly attractive to investors. Over the course of the last 20 years,the Mexican government has focused on improving the country’s infrastructure and building up its transportation,energy and telecommunications sectors.
According to the World Bank,Mexico is now the 13th largest economy in the world and the 11th largest purchasing power. In addition,the country’s stock market,the Bolsa Mexicana de Valores,is now valued at more than $450 billion,thanks in part to its progressive trade policies.
“The North American Free Trade Agreement (NAFTA) in 1994 was critical to getting Mexico integrated into the global economy,” explained Antonio Garza,former U.S. ambassador to Mexico and current chairman of business development firm Vianovo Ventures. “It helped start the reforms and improvements to infrastructure and letting more foreign businesses come in.”
CNBC reports that Mexico is now one of the world’s leading export countries and a major manufacturing hub. Under NAFTA,almost 86 percent of Mexico’s exports and 50 percent of its imports are traded with the U.S. and Canada. In addition,Mexico is the largest North American auto-producing nation,having recently surpassed the U.S. and Canada.
Mexico’s economic growth shows no signs of slowing down,as foreign investment dollars continue to pour into the country. Most recently,General Motors revealed plans to invest at least $120 million to build a new plant in the central state of San Luis Potosi,while Coca Cola intends to invest more than $1 billion in Mexico in 2012 as part of a 5-year,$5 billion investment plan. In addition,Mexico real estate is booming,offering buyers a wide variety of new opportunities.