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Doing Business in Mexico 2015

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237 Doing Business in Mexico 2015 Appendix XVI Major events/changes The Mexican economy is expected to grow around 3% in 2014. Inflation has been moderate in the last decade and at the same time international reserves have reached their highest level, standing at 180 billion dollars. The markets reflect this optimism, with the Mexican stock index tending to high. GDP has doubled in a decade except for the years of world economic crisis, and Mexicans are again making long-term capital investments in Mexico. Credit for this growth goes to the Mexican people and to sound government policies. Mexico has been on a reforming path for a number of years, privatizing, deregulating and pruning the role of government. President Enrique Peña Nieto's plan, which focuses on strengthening the rule of law, facilitating cross-border trade, and enhancing intellectual property rights protection, is a good example of the spirit of economic optimism that we increasingly see across Mexico. Part of this reform process has been the increased internationalization of Mexico's economy, which is seen in our foreign trade, with more than US $450 billion in goods and services crossing our borders (in and out). During 2014, the cross-border transactions the development of strategic industries and large investments continue in the automotive and manufacturing industries. At the date of this publication, significant reforms in energy and telecommunications are being discussed with the very high expectation that additional investments will be made in the post reform environment. Total foreign investment for 2013 amounted to US $20 billion. For Mexico, trade with the U.S. is greater than its trade with the rest of the world combined. For the U.S., trade with Mexico is larger than its trade with all of Latin America, including Brazil, Argentina, all of Central America, and all of the Caribbean, with enough left over to cover all its trade with India as well. Mexico keeps the reform process going through the U.S.-Mexico-Canada Security and Prosperity Partnership, which tackles issues such as: protection against faulty consumer goods; managing infectious diseases; reducing wait times at borders; and combating fakes and counterfeits. According to the World Bank, Mexico has been a top economic reformer, leapfrogging more than 20 countries in the 2007 annual survey of economic reform, and was recognized by the IMF (International Monetary Fund) in 2009 as the 13th largest economy in the world. In areas of starting a business, protecting investors and paying taxes, Mexico has made exceptional progress. According to the latest report (January March 2014) Mexico has increased its tax revenue by 4.4% in real terms when compared to the same period in 2013, Oil income for the Federal government has remained with its usual movement, but the tax income non-derived from oil has raised an 11.4%. It is expected that the recently announced "National Infrastructure Program" will benefit from this revenue increase and will create a multiplier effect in growth and development. XVI

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