"Within one month our revenues had jumped over 50%."

International Trade in Mexico

mexican economy

With an estimated population of over 112 million, according to a Government census, Mexico is the eleventh most populous country and the most populous Spanish-speaking country. Mexico is a federation comprising thirty-one states, with its capital based in Mexico City. Mexico has one of the world’s largest economies, and is considered both a regional power and middle power, according to Oxford Analytica. In addition, Mexico was the first Latin American member of the Organisation for Economic Co-operation and Development OECD, and is a firmly established upper-middle income country, as reported by the World Bank. Mexico is considered a newly industrialized country and an emerging power, according to IMPS News. It has the thirteenth largest economy, measured at $1.041 trillion in nominal GDP for 2011 by the World Bank and a GDP per capita of $9,489. The economy is strongly linked to those of its North American Free Trade Agreement (NAFTA) partners, especially the United States

The Mexican economy is expected to nearly triple by 2020, as reported by Euromonitor. According to Goldman Sachs, by 2050 Mexico will have the 5th largest economy in the world. Mexico is the largest North American auto-producing nation, recently surpassing Canada and the U.S, according to UPI. The industry produces technologically complex components and engages in some research and development activities. Tourism in Mexico is a very large industry. Mexico is the number one destination for foreign tourists within the Latin America region and number two destination in the Americas, ranking worldwide in the tenth place in terms of the international tourist arrivals, with more than 22.6 million visitors in 2008 while US dollar travel spending by all visitors rose 3.4% to US$13.3 billion. However, in recent years Mexican Tourism has been hurt by the drug violence, as a result tourist arrivals have significantly decreased. But the overall Mexican growth story has continued regardless of the drug violence.

The electronics industry of Mexico has grown enormously within the last decade. In 2007 Mexico surpassed South Korea as the second largest manufacturer of televisions, and in 2008 Mexico surpassed China, South Korea and Taiwan to become the largest producer of smartphones in the world. There are almost half a million (451,000) students enrolled in electronics engineering programs, according to Businessweek. In 201, the OCED and WTO both rank Mexican workers among the hardest working in the world, in terms of the amount of hours worked yearly. Mexico has a single securities market, the Mexican Stock Exchange. The market has grown steadily, with its main indices increasing by more than 600% in the last decade. It is Latin America’s second largest exchange, after Brazil’s. It had a market capitalization of $749 billion USD in 2010. The Mexican economy can be broken down into the following sectors, agriculture: 3.9%, industry: 32.6%, services: 63.5% for the year 2010.

Overall, Mexico is a very good market to do business or trade in. According to the World Bank survey, Mexico was ranked as the 53rd most easiest country to do business in, for the year 2012. In the same survey, it was ranked 46th for protecting investors, 59th for trading across borders, and 81st for enforcing contracts. The Mexican economy also grew by a healthy 5.5% in 2010 according to El Economista, which is quite impressive for an economy the size of Mexico, considering the global economic environment at the time. In many ways the Mexican economy has somewhat decoupled from the US, as well as becoming for intertwined with the US economy. It is likely the Mexican economy will continue to perform well into the future.

If you’re thinking about doing business in Mexico, a Spanish translation and interpretation service may be necessary in order to maximize your market potential. Be sure you go with an¬†accredited¬†agency that is a member of industry groups. One such company is Your Spanish Translation. According to the company:

Your Spanish Translation is a worldwide Spanish translation service provider with a team of skilled Spanish translators who are well-versed in various disciplines.

-Jay Zadey

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Author:Globial International Business Team

The Globial International Business Team researches, analyzes, and reports on all things related to global trade and business.

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