Mexico | G20 Tracker

Mexico: little growth in 2025 but good long-term potential

Mexico: little growth in 2025 but good long-term potential. Click to learn more.

Jul 23

1. Trade Relationships: Mexico has strong trade ties, particularly with the United States, making it a major player in global trade.

2. Manufacturing Hub: The country is a manufacturing hub for industries like automotive, electronics, and aerospace.

3. Tourism: Mexico's diverse landscapes, cultural heritage, and attractions contribute significantly to its tourism industry.

4. Natural Resources: The country has valuable natural resources, including oil, minerals, and agricultural land.

5. Young Workforce: Mexico's relatively young population provides a potential demographic dividend for economic growth.

1. Income Inequality: Disparities in income and wealth exist, impacting social cohesion and economic stability.

2. Security Concerns: High crime rates and security concerns can impact domestic and international business environments.

3. Informal Economy: A significant portion of economic activity occurs in the informal sector, affecting productivity and tax revenue.

4. Infrastructure Deficits: Mexico faces challenges in terms of inadequate transportation, energy, and basic amenities infrastructure.

5. Corruption: Corruption and bureaucratic inefficiencies can hinder business growth and investor confidence.

1. Manufacturing Growth: Expanding the manufacturing sector can create jobs, boost exports, and drive economic diversification.

2. Renewable Energy: Developing renewable energy sources can address energy needs and support sustainability goals.

3. Tourism Development: Investing in tourism infrastructure can attract international visitors and boost revenue.

4. Trade Diversification: Strengthening trade relationships with countries beyond North America can diversify export markets.

5. Digitalization: Embracing digital technologies can enhance efficiency, access to services, and business opportunities.

1. Global Economic Uncertainty: Mexico's economy is linked to global fluctuations, making it susceptible to economic shifts and trade tensions.

2. Political Uncertainty: Political factors, including policy changes and governance issues, can create uncertainties for businesses and investors.

3. Drug Cartel Violence: Organised crime and drug cartel violence can impact security and economic stability.

4. Natural Disasters: Mexico is susceptible to earthquakes, hurricanes, and other natural disasters that can impact infrastructure and economy.

5. Dependency on US Trade: Reliance on the US market exposes Mexico's economy to changes in US economic policies.