Mexico is the second largest economy in Latin America, and many see enormous potential in the country. Goldman Sachs Investment Bank predicts that Mexico will be the world's fifth largest economy in 2050, and that the infrastructure investments taking place in the coming years will be worth around 30 BUSD. At Business Sweden, we see a lot of potential for Swedish companies on the Mexican market. Only between 2014 and 2016, the trade increase between our two countries was 32 percent.
During the launching event, Olof Hällerman presented the report by describing Mexico´s market potential and going through the industries offering the most promising opportunities for Swedish companies, as well as providing insights on the overall political and economic movements. With the federal elections coming up in 2018, elections in the huge capital Mexico City the same year, and the renegotiations of NAFTA, a lot is going on in the region worth keeping track on.
Although some things are expected to stay more or less the same regardless of the election results and the renegotiations, one example also mentioned in the report is Mexico´s positive approach to international trade. It is the country with the most free trade agreements in the world; as many as 45 countries have FTA´s with Mexico. The agreement between the EU and Mexico is currently being sharpened by the parties, and the new and improved version is expected to be implemented in the beginning of 2018.
Of course, the report also mentions the debate around NAFTA. It is safe to say that both the U.S and Mexican economy are highly dependent on each other; the ties are not easily dissolved. Most of Business Sweden´s customers come to Mexico for sales on the domestic market, or the Latin American, which means the affect on these companies is only indirect, would there be any changes within NAFTA. Until now, no notable changes have been implemented. Business Sweden will stay focused on the matter and continue to provide insights on the market developments.
We are committed to support Swedish companies in growing international revenues by finding new revenue streams, shortening time to market and lowering the risks. Currently, over 100 Swedish companies have business or representation in Mexico, with our Mexico report we hope to inspire more companies to come here and take part of the many opportunities being offered. You find it here: www.business-sweden.se/themexicoreport