Although it is true that we will deal in depth with the possibilities for Spanish investors, entrepreneurs and companies in Mexico, it should first be noted that, in general, Latin America has become a very interesting area for all of them, especially taking into account the current context of strong instability in Europe due to global geopolitical tensions that cause changes in trade and economic flows. All this, added to This territory maintains strong linguistic-cultural relations with Spain, an important demographic development and, among others, its wealth in raw materials, makes many Spanish investors look favorably on the different countries of Latin America, although, as we pointed out, in this article we will focus particularly on Mexico.
With an ideal geostrategic location for bordering the United States and having direct access to Central and South America, Mexico is positioned as one of the best countries to invest and develop business today, since, after years of consolidating stable economic growth, it is already the 15th largest economy in the world, and aspires to become 9th in 2030, 7th in 2050, ahead of countries like Germany or the United Kingdom. The Latin American country also has good macroeconomic stability, with not too high a public debt and an austere, inclusive policy and a commitment not to raise taxes that compromise investment. Among the positive aspects, and a very important one, is that the educational policies have given good results, achieving a highly technically prepared human capital, there are more than 100,000 engineering, manufacturing and construction students who graduate annually. This, together with the aforementioned and good infrastructures, encourages the nearshoringthat is to say, that many manufacturers, naturally the majority from the United States, transfer part of their production to Mexico, so much so that this country is among the 10 most attractive for nearshoring for foreign direct investment (FDI).
One of the most outstanding aspects for which Mexico is of interest to many investors is because of its inclusion in the T-MEC, an important free trade agreement signed between Canada, the United States and Mexico that has outstanding benefits for the Mexican economy, especially for issues that concern imports and exports with those countries. Don’t forget that Mexico also has a Free Trade Agreement with the European Union, which allows it to trade with very good conditions with states such as Spain, with whom it maintains excellent trade relations. In fact, the Iberian country is the second largest investor worldwide in Mexico, only behind the United States.
In relation to the above, we would like to highlight that Spain-Mexico bilateral trade stood at around 8,700 million euros in 2021. In this sense, It should be noted that many Spanish companies have already established themselves in Mexico, especially in strategic sectors as important as energy, finance, tourism or telephony: Iberdrola, Repsol, Santander, BBVA, OHL, Sol Meliá, Barceló, Aena or Telefónica are just some of the Spanish companies that are operating in the Latin American country, which has more than 120 million potential consumers, which makes it very attractive. for companies and investors. It also happens vice versa, that is, Mexican investors who invest in Spain because of the opportunities it offers and because it is the gateway to Europe. Panrico, bought by Bimbo; Avanza, acquired by the ADO group; Yelmo Cines, since 2015 from the Mexican group Cinépolis; Realia, with 75% of the capital in the hands of Mexican magnate Carlos Slim, who also has a stake in FCC; and Campofrío, owned by Sigma Alimentos, are some examples of investment by Mexican businessmen in Spain. One of the success stories is the mayan bank, being a bank that intends to lead investments in real estate and industrial sectors in Spain. These data corroborate the mutual interest and good commercial relations that exist between Spain and Mexico.
Tourism, another of the strongest sectors of the Mexican economy
An aspect that we would also like to highlight in this article in whichWe explore investment possibilities in Mexico in the tourism sector, which has been expanding in recent years; Recently, the Secretary of Tourism of the Government of Mexico, Miguel Torruco Marqués, announced that the income of foreign currency from international visitors from January to September 2022 was 20,483 million dollars, 54% more than in 2021 and 10% more than in 2019, before the pandemic. In 2023, and according to the forecasts of the aforementioned Secretary of Tourism of the Government of Mexico, around 31,000 million are expected, which shows that it is a booming sector with great potential both for companies in the country and for foreign investors. .
Among all the proposals that Mexico offers, we would like to highlight Cancun, since it has become a reference for travelers, in fact, in 2021 it was the second most visited destination in the world, behind only Dubai. The Cancun airport receives millions of tourists every year —more than 30 in 2022, breaking its record in terms of passenger arrivals and departures— willing to enjoy its beautiful beaches, the biodiversity of its reefs, its scenic beauty and its its good climate, without forgetting the Mexican hospitality and its delicious gastronomy. It should also be noted that this town in the state of Quinta Roo has opted for quality and sustainable tourism, prioritizing longer stays and increasing coworking spaces while promoting services adapted to workation, a term that alludes to working in a vacation spot, in order to attract the so-called “digital nomads”, in addition to betting on sports tourism, with the celebration of events such as the half marathon. All this, together with the attractions of Cancun, which invite you to relax and connect with nature, has made possible the Good data on the arrival of international tourists to the city, as well as its mayoress, Ana Patricia Peralta de la Peña (Municipal President of Benito Juarez), was able to show in the last edition of Fitur 2023 in Madrid.
In summary, Mexico is a country full of possibilities in business matters, since it has economic and financial stability, demographic potential, qualified personnel and very attractive booming sectors —tourism and infrastructure, to mention just two. All of this, together with the good relations between Spain and Mexico, have made it a country of great interest to Spaniards who want to undertake business projects abroad.
Jose Miguel Ramirez
@GlobalbcAsia