With a population of 120 million, Mexico is the largest Spanish speaking country in the world. The country is the 12th largest economy globally, leading development in the region. Since the end of the 1980’s market opening and economic liberalisation constituted a major development strategy for Mexico and the government succeeded with implementing a number of structural reforms (energy, telecoms, and taxes), which are expected to lead to improved competitiveness and increased growth.
Mexico is Sweden’s second largest export market in Latin America and the free trade agreement between EU and Mexico brought a visible improvement to the trading balance. Being a member of NAFTA also increases the country’s attraction from an investment perspective and already today many companies manufacture products in Mexico that are sold across the Americas. Over 100 Swedish companies are active or represented in Mexico, in 2014 Swedish export was SEK 4.5 billion. Between January and May in 2015 the same number was achieved, an increase with 22 percent from last year. Some of the most important sectors are components to the automotive industry, machinery and medicinal products.
Business Sweden has been active in Mexico since 2003. The office has eight employees, five from Sweden and three from Mexico. The office is also responsible for markets in Central America and the Caribbean where recent development in Cuba hold a promise for the future.
There are business opportunities in several industries where Sweden are industry-leading, among them vehicles, mining, energy, IT and telecoms. Furthermore there is a growing need for solutions in security, the environmental sector as well as health care and medicine. Foreign investments in Mexico has surged with 20 percent since 2009, predominantly in the automotive industry, the fastest growing industry in Mexico.
Today the direct average cost of production in Mexico is four percent lower than China. Most major automotive companies and key suppliers have manufacturing facilities in Mexico, which means business opportunities for Swedish subcontractors.
Although economic growth is solid and the country’s open trade policies, bureaucracy can pose a challenge in Mexico and the neighbouring countries. Business Sweden supports the establishment of Swedish companies and offers services such as legal counselling, office spaces, financial management, and recruitment among others. Lately market analysis, location analysis and partner search has been in demand with Swedish businesses. The colleagues in the office has years of experience in support Swedish industry and all have university training in marketing, finance, law or logistics.