Mexico Facts and Figures

Mexico is situated in the southern part of North America, bordered by the United States to the north and Belize and Guatemala to the southeast. The country features a diverse geography, including mountains, deserts, and coastal regions along both the Pacific Ocean and the Gulf of Mexico. Major cities such as Mexico City, Guadalajara, and Monterrey serve as cultural and economic centers. Mexico is a member of various international organizations, including the United Nations (joined in 1945), the North American Free Trade Agreement (NAFTA, established in 1994), and the Organization for Economic Cooperation and Development (OECD, joined in 1994). The country boasts impressive statistics, with a population of over 126 million and a significant cultural heritage that includes UNESCO World Heritage Sites and a rich array of indigenous languages.

Transformative Historical Events

Mexico's history is marked by significant political and economic events that shaped its trajectory. The Mexican Revolution (1910-1920) was a pivotal moment that transformed the country's political landscape, leading to major social reforms. Additionally, the signing of NAFTA in 1994 facilitated trade with the United States and Canada, significantly impacting Mexico's economy by increasing exports and foreign investment. The 2014 energy reform is another landmark event, opening the oil and gas sector to private investment, thus enhancing competitiveness and innovation.

Mexico's Demographic Landscape

Mexico exhibits a complex demographic profile characterized by a substantial population of 128,455,567 (2023) and a moderate population density of 65 people per square kilometer (2021), which supports balanced development opportunities. The country's demographic strength lies in its substantial working-age population of 67.2% (2022) and youthful median age of 30 years (2024), though these advantages are accompanied by the challenges of meeting educational and employment demands. While the life expectancy of 75 years (2022) indicates progress in healthcare, persistent challenges are reflected in the crude death rate of 6.7 per 1,000 persons and infant mortality rate of 11.0 per 1,000 live births (2022). The nation's demographic future is shaped by a modest annual growth rate of 0.7% (2023) and a below-replacement fertility rate of 1.8 (2022), while its high urbanization rate of 81.6% (2023) emphasizes the pressing need for sustainable urban development strategies to maintain quality of life in increasingly populated urban areas.

Economic Profile

Mexico stands as a significant global economic player with its $1.79 trillion GDP in 2023, securing the 12th position worldwide and demonstrating remarkable resilience through a robust 3.9% growth rate in the post-pandemic recovery phase. The economy's health is further evidenced by moderating inflation, which, while reaching 5.5% in 2023, shows promising signs of stabilization with projections of 4% for 2024. The nation's international trade activity reflects its deep integration into global markets, though a trade deficit of $28.5 billion in 2023 ($593 billion in exports against $621 billion in imports) suggests opportunities for enhancing domestic production and competitiveness. On the employment front, progressive improvement is evident with unemployment falling to 2.8% in 2023 from 3.3% in 2022. The economic structure reveals a mature, service-oriented economy where services dominate at 57.6% of GDP, followed by a substantial industrial sector at 33.6% (with manufacturing comprising 21.5%), while agriculture contributes 4%. Businesses aiming to enter these sectors can benefit from market research in Mexico to identify opportunities and mitigate risks.

Mexico's Fiscal Position

Mexico's fiscal landscape presents a complex interplay of challenges and strategic considerations, marked by evolving patterns in public finance management. The country's minimal dependence on external assistance is evident through its remarkably low Net Official Development Assistance (ODA) of 0.03% of Gross National Income (GNI) in 2022. However, the fiscal position shows persistent pressures, with the deficit (net lending/borrowing) marginally deteriorating to -4.29% of GDP in 2023 from -4.27% in 2022. Of particular significance is the substantial increase in central government debt, which has risen from 28.15% of GDP in 2012 to 40.86% in 2022.

Mexico's Defense Infrastructure

Mexico maintains a substantial military force of 277,000 personnel (2016), constituting 21.7% of its population. The country's approach to military investment reflects careful resource allocation, evidenced by the modest reduction in military spending from 0.7% of GDP in 2021 to 0.6% in 2022.

Conclusion

Mexico's multifaceted landscape presents compelling opportunities for businesses, underpinned by its robust demographic dividend, evolving economic structure, and strategic geopolitical position. Success in this dynamic market demands a nuanced understanding of its complexities, from shifting consumer behaviors to regulatory frameworks and security considerations. A thorough market research in Mexico becomes not just beneficial but essential, enabling businesses to navigate challenges while capitalizing on growth opportunities.