Country Facts Mexico.
- Mexico is the largest Spanish-speaking country in the world.
- It is among the 5 countries with the highest biodiversity in the world due to its privileged geographical location, its climate, and its diverse topography.
- It has the most UNESCO World Heritage sites in the Americas: 33”
- The country is the eighth-largest tourist destination in the world and boasts a large industrial base.
- From adventure sports to gastronomy, more and more foreigners decide to enter Mexican culture and get to know the country.
- It is the second-largest economy in Latin America and the fourteenth economy in the world. Goldman Sachs predicts that Mexico’s economy will be the world’s eighth-largest by 2050.
- Mexico is part of 13 treaties with more than 45 countries, which gives it access to 61% of world GDP and more than 50% of world trade.
- Mexico attracts the largest amount of FDI in Central and South America. It enjoys a strategic and active geographical location as a transit point between North America and Latin America.
Importance of small and medium-sized companies
Small and medium-sized enterprises are a determining link in the chain of economic activity and are essential for regional and local development. 95.4% of companies across the country are SMEs. Their contribution is 52% of GDP. In addition, they represent 72% of the jobs in Mexico.
Mexico has a population of 135 million citizens, making it the only most populous country. About 1/5 of the population lives in or near Mexico City (the capital) and the neighboring State of Mexico, which together house 25.1 million people.
It has a predominantly young population, compared to other industrialized countries. In the last census, in 2015, more than 55% of the population was under 30 years old.
Although the majority of the population speaks Spanish, more than 7 million Mexicans also speak one of the 62 indigenous languages in the country. Maya and Nahuatl are the most widely spoken. The states with the highest percentage of speakers of indigenous languages are Oaxaca, Chiapas and Yucatan.
Mexico is a leading commercial destination due to the availability of cheap labor. Costs are a fraction of the United States and English is available, especially in Baja California.
The average annual salary for an engineer in the United States is $85,663 USD, while the average annual salary for a mechanical engineer in Mexico is the equivalent of $15,514 USD. This is just one of the many professions in which salaries are substantially lower, without compromising quality.
Key sectors of the national economy
Mexico’s economy is diversified, including high-tech industries, oil production, mineral exploitation, and manufacturing. Agriculture represents 3.4% of Mexico’s GDP and employs more than 13% of the country’s active population. Mexico is among the world’s largest producers of coffee, sugar, corn, oranges, avocados, and limes.
The banking sector is also growing rapidly and represents an opportunity for investors. The government has expressed its desire to modernize the country’s infrastructure, including hospitals and transportation, and is seeking to attract more FDI.
- 25% of university students graduate in science, technology, or engineering; the eighth-highest percentage in OECD countries and the sixth with the majority of engineering graduates worldwide.
- 4th fastest-growing workforce worldwide.
Guadalajara, the Mexican Silicon Valley
Guadalajara, the second-largest city in Mexico, is known as “the Mexican Silicon Valley" for constituting the most important technological cluster in the country, recognized worldwide thanks to the development of the software industry.
The state government has invested in infrastructure to turn Guadalajara into an international technology center. Technology giants like IBM, Oracle, HP, and Motorola have been established for several years in this city.
To date, the city’s exports have exceeded $ 20 billion, and this figure is expected to increase in the coming years. Telecom and computer equipment from Guadalajara accounts for about a quarter of Mexico’s electronics exports
All of this is based on technological talent: Guadalajara has an excellent engineering school, the University of Guadalajara, which graduates more than 10,000 highly qualified engineers every year.
Mexico has one of the best startup ecosystems in Latin America. In the last year, it has established itself as one of the most outstanding countries in the field of innovation in fintech, the financial technology sector.
With more than 350 successful startups, it is the largest ecosystem in the region and one of the main drivers of financial innovation in Latin America. The Mexican startup sector is currently 2.5 times larger than that of Colombia, the third in the region with 124 new companies. In addition, startups in Mexico have a lower failure rate: 12% compared to the 14% identified in Brazil.
Facilities for foreign investment
Mexico offers extremely favorable advantages for foreign investment. The procedure for establishing a new company in Mexico is particularly agile and efficient. Another example is the series of subsidies, renewed and improved day by day, aimed at promoting the exchange of goods and services with other nations. However, complicated taxes and compliance can make the administration of a company quite complicated. Working with trusted partners is essential to avoid major risks.
Business culture of Mexico
It always starts with a little chat. The average Mexican business executive spends most of their time discussing general issues, waiting for the last moments of conversation to raise the issue at hand.
Lunch is the main meal of the day for Mexicans. It is a free time to talk to friends and family and work often stops between 1:30 pm – 4:00 pm. However, business lunches are an essential part of business to establish a personal relationship, so it is important to attend.
Mexico has a culture that enjoys negotiations. Trust plays a very important role in establishing relationships, this can sometimes be even more important than competence or professional experience. When the negotiations are over, be sure to go back to the little talk a little before you leave and always say goodbye
Deals are often closed in bars. There is a saying that goes: “with alcohol comes sincerity." That is why, many times deals are closed in bars, after one (or several) rounds of tequila.
Mexican gastronomy: regional, street and hipster food
Mexican food has some of the best known and loved dishes in the world. Mexican cuisine varies by region due to local climate, geography, and ethnic differences among indigenous inhabitants.
There are seven culinary regions in Mexico, each with its own unique dishes: the North, the North Pacific Coast, El Bajio, the South Pacific Coast, the South, the Gulf and Central Mexico.
Considering its uniqueness and influence on the cultural and social facets of Mexican society and the world, the United Nations Educational, Scientific and Cultural Organization, UNESCO, arranged a special honor. In 2010, Mexican cuisine we placed on the Representative List of the Intangible Cultural Heritage of Humanity.
Street food, or “garnachas” have existed since pre-Hispanic times: the Aztecs ate at the Tlatelolco market. From the typical taqueria (taco stand) to the mobile food stall, the streets of Mexico are smorgasbords of culinary delicacies.
Mexico’s extensive culinary tradition is increasingly combined with innovation, with many cutting-edge chefs reinventing it and projecting it into the future. Standout innovators such as Enrique Olvera, Daniela Soto-Innes, Francisco Ruano or Jorge Vallejo place Mexico as one of the most important gastronomic destinations in the world.