Mexico Economy

Key Economic Indicators

• GDP (2024): $1.9 trillion
• GDP per capita (PPP, 2024): $15,300
• Inflation (2025): 3.8%
• FDI inflows (2024): $36.9 billion
• Exports (2024): $617 billion (≈84% to the U.S.)
• Industrial contribution: 30% of national GDP
• Population (2025): 132 million

Mexico’s diversified economy is ranked the 12th largest globally, with a growing emphasis on innovation, sustainability, and industrial efficiency. The government’s national nearshoring agenda continues to attract major multinational investments in electronics, automotive components, pharmaceuticals, logistics, and renewable energy.

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Industrial and Manufacturing Development

Manufacturing is the backbone of Mexico’s economy, representing almost one-third of GDP and employing more than 9 million people.
Key industrial corridors include Monterrey, Guadalajara, Querétaro, and the Bajío region, hosting state-of-the-art factories and technology parks.

Leading Manufacturing Sectors

• Automotive and Aerospace: $130 billion in annual exports. Mexico is the 7th largest automotive producer worldwide, home to brands like BMW, Tesla, GM, Ford, and Audi.
• Electronics: Global manufacturers such as Samsung, LG, and Foxconn operate major plants for consumer electronics and components.
• Medical Devices: Mexico is #1 in Latin America and #8 globally in medical device production, exporting $11 billion annually.
• Machinery and Equipment: Industrial clusters in Nuevo León and Jalisco supply North America’s construction and energy sectors.

This industrial ecosystem has made Mexico one of the world’s leading platforms for high-value nearshoring operations.

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Nearshoring and Global Supply Chain Integration

Nearshoring is transforming Mexico’s economic map.
Since 2022, over 400 international companies have announced production relocations from Asia to Mexico, particularly in automotive, semiconductors, packaging, and industrial equipment.
The U.S.–China trade realignment has positioned Mexico as the preferred manufacturing alternative for North American and European firms seeking shorter logistics routes, lower costs, and political stability.

According to the Inter-American Development Bank, nearshoring could add $35 billion annually to Mexico’s exports by 2027.
Regions such as Nuevo León, Chihuahua, Coahuila, and Querétaro have recorded record industrial occupancy rates above 96% in 2024.

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Energy, Mining, and Natural Resources

Mexico’s energy mix is undergoing a gradual transition toward renewables.

• Oil production: 1.7 million barrels/day.
• Renewable capacity: 30 GW (hydro, solar, wind).
• Mining: 10th global producer of silver, zinc, and copper.

The country is investing heavily in solar and wind projects, particularly in the northern and central states. By 2030, Mexico aims to source 40% of its electricity from renewables, creating strong demand for industrial equipment, materials, and smart grid technologies.

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Agriculture and Food Processing

Agriculture represents 3.8% of GDP and remains vital for employment and exports.
Key segments include:

• Avocado, berries, coffee, sugar, and livestock.
• Agroindustry exports surpass $50 billion annually.
  Mexico is the world’s largest exporter of avocados and a top-10 global supplier of processed foods and beverages.
  Food processing industries have modernized through automation and packaging innovation, creating a robust value-added export chain.

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Technology, Innovation, and Digital Economy

Mexico’s digital economy exceeds $90 billion, fueled by e-commerce, SaaS, fintech, and industrial automation.
Mexico City and Guadalajara are recognized as LatAm’s top innovation hubs, home to over 7,000 startups and international tech accelerators.
High-speed connectivity and talent availability are driving adoption of AI, IoT, and robotics in manufacturing and logistics.

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Infrastructure, Logistics, and Connectivity

Mexico’s logistics network includes:

• 117 seaports (major: Veracruz, Lázaro Cárdenas, Manzanillo).
• 65 international airports.
• 27,000 km of railways.

Investments in highways, rail expansion, and industrial zones are enhancing trade efficiency under the Interoceanic Corridor of the Isthmus of Tehuantepec, linking the Pacific and Atlantic coasts as an alternative to the Panama Canal.
This project alone is expected to generate $30 billion in trade flow by 2030.

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Trade Agreements and Market Access

Mexico maintains 13 free trade agreements covering 50 countries, providing access to markets representing over 60% of global GDP.
Key frameworks:

• USMCA (North America)
• EU–Mexico Global Agreement
• Pacific Alliance
• CPTPP (Trans-Pacific Partnership)

This extensive network consolidates Mexico’s role as a global export platform and gateway for international business expansion in the Americas.

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Investment Opportunities for International Providers

For global companies, Mexico offers:

• Strategic nearshoring location with U.S. proximity.
• Mature manufacturing infrastructure.
• Skilled and cost-effective workforce.
• Competitive trade incentives.
• Access to energy, technology, and logistics projects.

Sectors with the strongest expansion potential:

1. Automotive and electric mobility
2. Renewable energy and smart grids
3. Industrial machinery and automation
4. Food processing and agritech
5. Packaging, logistics, and supply chain software

Tax System in Mexico – Fiscal Structure and Main Taxes

Future Outlook

By 2030, Mexico is projected to surpass $2.3 trillion GDP, positioning itself among the world’s top 10 economies.
Its combination of industrial capacity, trade access, and nearshoring momentum will keep attracting global manufacturers, suppliers, and technology firms seeking regional growth and operational stability.

• Agriculture and Agritech
• Automotive
• Construction and Infrastructure
• Cosmetics Manufacturers
• Energy and Environment
• Electronics and Components
• Food Industry and Processing
• Food and Beverages Manufacturers
• Gardening and Green Spaces
• Health and Medical Devices
• Industrial Machinery and Automation
• Mining and Metallurgy
• Plastics and Packaging
• Pharma and Chemicals
• Recycling and Circular Economy
• Startups & Tech Innovators
• Transportation and Logistics
• Technology and IT
• Textiles, Leather and Footwear
• Urban Maintenance

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