Thanks to the certainty, security and support of its institutions, Mexico has developed a solid economic stability and structural changes that have increased its competitiveness as an investment destination despite the global economic crisis.
As a result of the global crisis, the Mexican market contracted 35% in 2009; however, it has strongly recovered since, much faster than most other countries (29% during the 2st quarter in 2010).The country’s public finances are well-balanced, as are its banking and financial systems with Mexico’s external accounts showing very moderate deficits and one of the lowest inflation rates among Latin America’s main economies.
Likewise, the country has signed Agreements on the Reciprocal Promotion and Protection of Investments with 28 countries and signed Agreements to avoid Double Taxation with more than 30. AT Kearney has ranked Mexico as the 8th most attractive destination for Foreign Direct Investment (FDI) in the world, moving up 11 positions between 2007 and 2010.
Another factor is Mexico’s increasing transparency and law enforcement regarding such. Its system of government has made it easier to endorse laws and mechanisms that guarantee the transparency and security of investments, as well as of industrial and private property.
On June 12th 2003, Mexico approved the Federal Law on Transparency and Access to Public Government Information which, as part of the process of reform that the State is going through, its purpose is to strengthen the democratization of the country, as well as to establish a relationship based on the government’s accountability to society. As for NAFTA, it provides the appropriate legal framework and certainty for trade in the North America region through legal instruments such as patents, copyrights, and trademarks, and also includes provisions covering trade rules and dispute settlement.
With these along with many other positive factors, it seems like nothing can slow Mexico down. The economic policies of the last few decades have proven to be a determining factor in guaranteeing the sound and stable macroeconomic environment that continues to persist in Mexico.
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