Focus On Mexico
In the face of an increasingly challenging global economy - and well documented economic hostility from one major neighbouring nation in particular - Mexico's economy has shown a moderate degree of resilience.
The World Bank notes that Latin America’s second largest economy (behind Brazil’s) saw a healthy rate of growth at an annual rate of 2.5% throughout the majority of 2015 and early parts of 2016. However, a downward-spiral in oil production and tougher fiscal and monetary policies, as well as a volatile, post-Brexit exchange rate, are expected to weigh heavily on the country’s economic growth.
A population of over 120 million makes Mexico the world’s most populous Spanish-speaking country, and its market is about the same size as the whole of western Europe. Home to the 15th largest economy on earth (World Bank predicts it will become the fifth largest by 2050), Mexico owes much of its rising wealth to oil, where it currently stands as the tenth largest oil producer in the world.
In 2014, trade between the UK and Mexico was worth $32 billion. UK businesses have taken advantage of the export benefits, which include the free trade and double taxation agreement in place.
British products hold a significant presence in Mexico and data shows that UK exports in services have increased in importance in 2015, rising to 20.95% after a dip in recent years. The Department for International Trade list the top exports as: • Power generating machinery and equipment • Road vehicles • Medicinal and pharmaceutical products • Beverages • Essential oils and perfume materials • Organic chemicals • Industrial and scientific machinery • Insurance and pension services