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Mexico Expansion
Mexico
Macroeconomic Prospects for Investment
Mexico represents an ideal target for production expansion for many reasons. The country has both low unemployment and low inflation which provides a foundation of stability in the workforce. Furthermore, the free trade agreements such as NAFTA with the North American countries allows firms to import and export goods and services with relative ease compared to other countries without such agreements. However, at the same time there are also many challenges to be found in the Mexican business environment. For example, there is a lot of corruption in many companies and among many public officials. There are also many social issues that arise from high rates of inequality in the country as well a project labor shortage to meet future demand for labor. This analysis will provide a brief overview of the business opportunities that can be currently found in Mexico.
Contents
Executive Summary
A. Strengths
B. Macroeconomic summary 4
C. Risks 4
2. Macroeconomic Variables 5
A. GDP 5
B. Trade Balance 7
C. Business Confidence Index 9
D. Monetary and Fiscal Policies 9
E. Lending and Currency Exchange 10
F.Employment and Wages 11
3. The Long View - Question of Sustainable Prosperity 12
4. Conclusion 13
Works Cited 14
A. Strengths:
Low inflation & Low unemployment
Stable currency
Free Trade Agreements
Low Debt to GDP ratio
B. Macroeconomic summary
Economic Indicators
2013 Data
Trend
GDP Growth Rate
1.1%
Slowing/Stagnant
Trade Balance
-1.01 USDB
Balanced
Debt to GDP
10.3%
Slight Increase
Inflation
4%
Stable
Business Confidence
53.3%
Stable
Currency Stability
$13.08 USDMXN
Stable
Unemployment
5.7%
Low/Stable
Corruption Index
106 th/177
Persistent Corruption
Global Competitiveness Index
52/144th
Somewhat Competitive
Human Development Index
57/188th
High
Happy Planet Index
22nd
Mid-Range
Open Budget Index
52/100
Some Info Available
C. Risks
Slow GDP growth
Corruption/Public Safety
Labor Shortage (projected)
Income Inequality
2. Macroeconomic Variables
A. GDP
Mexico GDP Constant Prices
Mexico GDP per capita PPP
Mexico GDP Annual Growth Rate
Mexico GDP Growth Rate
Mexico GDP
B. Trade Balance
Trade deficit -- imports/exports
Free Trade Agreements
Remittances from USA
C. Business Confidence Index
1. Trend 2004 -- 2014
D. Monetary and Fiscal Policies
1. Budget Deficit
1......