Mexico – the country

Mexico is not just the country of Tequila, Sombreros and Tacos. With its location, highly educated workforce and low production costs, it is an excellent location to manufacture goods or provide services.

1. Mexico - the country​

2. Hard Facts about Mexico

3. Economy of Mexico​

4. Government of Mexico​​

5. Merchandise trade Mexico and United States

6. History of Mexico

7. People and Culture of Mexico

With over 131 million habitants and 8th place in production, Mexico belongs to the most competitive countries worldwide.

1. Mexico – the country

Mexico is not only the land of tacos, sombreros and tequilas but enjoys the reputation of having a strong manufacturing, commerce, and service industry.

Mexico has excellent qualified and specialized workforce and with the IMMEX program a strategically very attractive and competitive business model to attract foreign companies. United States is within a few driving hours at over 50 borders reachable.

In addition, they have 50 trade agreements with countries all over the world which facilitate the import / export process. 

2. Hard Facts about Mexico

126

million habitants

50

Free Trade agreements with other countries

17th

place for tourists worldwide

$1

Dollar are 1.20 Pesos (currency of Mexico)

8th

largest production worldwide

15th

place in business worldwide

29 / 75

years average age / years life expectancy

2nd

place in the Latin Competitive Report

$750

is average wage in Mexico

110'000

engineers graduated yearly

$1.269

billion USD is Mexico's GDP

$4.45

US Dollars cost a m2 to rent in average

Mexico is the world leader for exporting trucks and ranks among the top countries for global sales of (electrical) machinery, medical apparatus, plastic articles, cars and automotive parts or accessories.

3. Economy of Mexico

In 2020, the gross domestic product in Mexico was 1.269 MRD USD in total, which reflected into per head in 9’900 USD and place 15 worldwide. This was a significant grow as in the 1990’s, the GDP was per head on 3’000 USD with a peak in 2014 with 14’000 USD – an increase of almost 500% within 20 years. The year 2024 predicts a GDP of around 9,300 USD.

As you can extract from the graph, Mexico belongs to the Top 11 export countries worldwide.  In 2019, Mexico has exported over 461 Billion USD to other countries and steadily increased it extraordinary.

If we look at the top, the neighbor country United States is placed on the second place with 1.645 Billon USD, – 4 times more than Mexico itself. And if we see the tense, political development between United States and China, there is a huge potential for Mexico to step in an export more products.

The largest part comes from the car manufacturing, followed by machinery, electrical machinery, optical apparatus, mineral fuels, and plastic articles.

Find out more specific export details of the industry below on the link!

Thanks to the Immex Program, as a foreigner you do not pay any tax on processed goods.

Thanks to the Immex program,  no customs duties are charged on raw materials, which makes Mexico very attractive to produce goods. Thanks to the very well trained workforce and excellent price-performance ratio, the country is one of the most competitive countries in the world. It is therefore not surprising that they are ranked 8th worldwide in doing business.

4. Government of Mexico

Mexico is considered a federal republic, with a chief of state and a head of government making up its executive branch of government. It should be noted though, that both of these positions are filled by the president.

Mexico’s legislative branch consist of a bicameral National Congress with a Senate and the Chamber of Deputies. The judicial branch is made up of the Supreme Court of Justice.

Mexico is divided into 31 states and one federal district (Mexico City) for local administration.

5. Merchandise trade Mexico and United States​

Mexico has a free market economy UMSCA

Mexico currently has a free market economy wich has a mix of agriculture and modern industry . The economy is still growing with a huge potential. But there is also a large inequality in the distribution of income.

Mexico belongs to one of the top trading partners for the United States and now with the USMCA (previously named NAFTA) in place, this pushes more reasons, as why Mexico is a great place to settle down the production of any company.

40% of every dollar that cross the US/MX border for trade is of US origin. This means that at least 40% of products crossing the US/MX border has a product/component that was made in the United States. In comparison, for China, it is only 3-4%. 

6. History of Mexico

The earliest settlements in Mexico were those of the Maya, Aztec, Toltec, and Olmec. Thous groups developed complex cultures prior to any European influence. Between 1519–1521, Hernan Cortes took over Mexico and founded a colony belonging to Spain that lasted for almost 300 years.Pyramid of Maya

The  independence did not come until 1821 after years of war. In that year, Spain and Mexico signed a treaty ending the war for independence.

The treaty also laid out plans for a constitutional monarchy. The monarchy failed, and, in 1824, the independent republic of Mexico was established.

In the 19th century, Mexico went through several presidential elections and fell into a period of social and economic problems. These problems led to a revolution that lasted from 1910–1920.

In 1917, Mexico established a new constitution, and in 1929 the Institutional Revolutionary Party rose and controlled politics in the country until 2000. Since 1920 though, Mexico has undergone a variety of reforms in the agriculture, political, and social sectors that allowed it to grow into what it is today.

In the 1970s, the country became a large producer of petroleum. In the 1980s though, falling oil prices caused Mexico’s economy to decline, and, as a result, it entered into several agreements with the U.S.

7. People and Culture of Mexico

Since ancient times, Mexico has produced great art and impressive artists. Ancient cultures created beautiful sculptures,  jewelry, and murals. 

Mexican culture is influenced by the rich history of its native peoples, the Spanish who ruled the country for three centuries, and the influence of the United States.

Apart from  art, Mexicans have a long history and tradition of sports. An ancient ball game was played in Mexico centuries ago, and back then, the losers were sometimes killed.

Today, competitors in bullfighting and rodeo still endanger their lives while engaging in sports, but the most popular sports in Mexico are ones that are common in other countries, too, like soccer and baseball.