Mexico is the largest country within the Pacific Alliance, ranking 12th in the world ranking of economies and second in Latin America after Brazil. Mexico is in 13th position globally in regards to exports.
Mexico has signed free trade agreements with over 45 countries, but 75% of exports still reach the NAFTA region (USA/Canada) which leads to a strong dependency of the Mexican economy on the economic fluctuations in the US. Mexico is therefore very interested in the diversification of trade relations. The membership in the Pacific Alliance is targeting a new growth centre for Mexico’s export markets und therefore a reduction in dependency on the US market.
German-speaking companies will find Mexico extremely attractive as both a production centre and a market. Mexico’s strategic position between North and Latin America is very convenient and offers a local market with 120 million consumers with a per capital annual income of approx. 18,370 US$. Mexico is recognised as the extended American “work bench” and accommodates several industrial clusters of automotive, aerospace and medical device branches. Anyone interested in a production location within the dollar zone should consider and analyse the Mexican market in relation to its NAFTA membership.
- Population: 120 million
- GDP: US$ 2,224 billion (PPP basis, 2015)
- Main economic activity: oil, automotive, tourism, banking
- Main imports: electronics, machinery (steel processing, agricultural), automotive parts, plastic and chemical products