Why Foreign Investors Should Consider Investing In Mexico?


Mexico is one of the top developing countries in the world and it is on the list of countries in which foreign investors should invest. If you are an individual who is looking to explore new markets or your company is interested to jump into a new market then Mexico is a good choice and here are some reasons why Mexico is a good choice for foreign investors:

1. Prime Geographical location

Mexico lies next to the largest consumer market in the world, the USA and both the countries share a common border of more than 2000 miles. Because of the close proximity of Mexico to the United States, any goods manufactured in Mexico can be delivered to the largest consumer market in the world in less than 48 hours.

The geographical location of Mexico is so prime that you can easily deliver goods to the US. Along with that, Mexico is also the bridge between the US & Canada and the rest of Latin America, which also makes its location very prime.

2. A Large Economically Active Population

Mexico also has a large population that is economically active. According to the latest data, Mexico is the tenth most populous country in the world and the population is economically active which means that people of either sex are actively looking to work, be it labor or providing services. Plus, Mexican people are also very popular on platforms like Ometv.

This is a very beneficial thing because an economically active population means that you will be able to find labor at competitive costs. If you compare the labor costs in the US to that of Mexico then you will find much better costs in Mexico because of a large economically active population.

3. Mexico Is A Part Of Various Free-Trade Agreements

Mexico also has relations with other countries all around the world and it participates in 12 Free Trade Agreements because of which it has commercial relations with a total of 45 countries all over the world. Anyone who is looking to invest in Mexico will enjoy the benefits of being able to ship goods duty to major markets of the world. 

The most significant and noteworthy trade agreements that Mexico is a part of include the United States-Mexico-Canada Free Trade Agreement, The Trans-Pacific Partnership (TPP), The Mexico-EU Free Trade Agreement, and the Pacific Alliance, which includes Chile, Colombia, Peru, and Mexico.


4. Huge Number Of Educated Individuals

Another reason to invest in Mexico is that Mexico has a huge number of educated individuals in the country. According to a recent report, the higher education graduation rates for Mexican people have increased over the past, and this is all because of a huge number of federal, national, and private universities in the country along with technological institutes. 

If we compare the number that we have now to that of the previous decade then we will see a huge increase from the last decades and people who are looking to invest in Mexico will be able to enjoy the skilled local workforce. So, a company looking to invest in Mexico won’t have to hire foreign engineers since Mexico itself is able to produce skilled and talented engineers and even when you are randomly surfing a website like Omegle, you will find many skilled individuals from Mexico.

5. Growing Domestic Market

If a company is looking to invest in the domestic market of Mexico to get access to its internal and domestic market then they will be happy to find that in 2018, Mexico’s Private Consumption contributed more than 65% to the GDP of the country, which shows that this market is very promising. 

One of the reasons behind such a huge increase is because of the middle class of the country getting educated and increasing their spending in the domestic market. Another reason is that there has been an increase in the supermarkets and departmental stores across the country, with more than half of the country now having access to supermarkets, hypermarkets, and departmental stores.

6. Tax Benefits And Incentives

Along with this, another very attractive benefit of investing in Mexico is that foreign investors get a lot of tax benefits and incentives. This includes duty-free imports for up to 18 months for raw materials and suppliers for IMMEX certified companies, import duty refunds, no local or state income tax on corporate earnings, and various other benefits. These benefits are very attractive and these can attract any foreign investor to the country.

7. Various Leading Industries In The Country

Mexico’s name is also included in top producers of the world in various industries. One of the most important industries in Mexico is the automobile production industry. Automobile and passenger vehicle companies that have invested in Mexico have made Mexico’s automobile industry the 7th largest producer of automobiles in the world. 

In addition to the automobile industry, aerospace, medical device & equipment, and electronic industries are also very prominent in the country.

Mexico Daily Post