Exchange Rate
Mexican peso (MXN)
Inflation: 4%
1 USD = 13.55 MXN
The latest data shows that Mexican Pesos has been gaining strength steadily since last year. Over the past two weeks, though, the Peso has hit a bump and depreciated almost 3% in that short time. This highlights the volatility and importance of foreign exchange risk for foreign investors.
Investment Climate
Mexico is open to foreign direct investment (FDI) in most economic sectors and has consistently been one of the largest
recipients of FDI among emerging markets. Mexico’s macroeconomic stability and its proximity to one of the largest markets in the world have attracted investors. Mexico’s new
PRI government, led by President Enrique Pena Nieto, will prioritize structural economic reforms and competitiveness.
According to the Secretariat of the Economy, Mexico is currently the top destination for aerospace manufacturing
investments in the world. Financial services, automotive and electronics have received the largest amounts of FDI. Recently,
Mexico’s auto industry gained attention from investors as Mexico became the eighth world producer of automobiles in
the world.
Efficient Business…
Because of the Mexican
productivity, the labor market, the
finances and attitudes and
values.
Taxes
Property taxes are very low in Mexico as a whole. The property tax, known as a predial is
.1% of the assessed value. Taxes are paid annually, with the assessed value determined at the time of sale. If you purchase a property with an assessed value of $100,000US dollars
your annual tax rate would be $100.00US dollars. The reason taxes are so low is due to the fact that they have never been a source of revenue for the Mexican government
Strategic geographic location
Mexico shares
more than 3,000 km
border with the
U.S.A., the world’s largest
economy.
Investing in Mexico
In 2005 Mexico was the largest recipient of FDI in Latin America, 4th among emerging
economies, and 13th in the world.
Advantages of Investing in Mexico
A consumer market fuelled by macroeconomic stability.
High-quality labor force.
Open trade and investment policies.
Mexico is one of the most attractive locations for FDI, as a NAFTA member since 1994.
Annual inflation rate in 2006: 4.05%
Approximated GDP annual growth for the upcoming six years: 3.6%
80% of exports are manufacturing.
Bibliography
http://www.investinmexico.org.mx
http://www.forbes.com.mx/que-sectores-son-ideales-para-invertir-en-tiempo-de-crisis/
http://www.globalfirepower.com/labor-force-by-country.asp
http://mx.investing.com
http://mim.promexico.gob.mx/doc/Documentos_de_interes/Investment_in_Mexico_2012.pdf