Mexico's Leading Sectors and Markets
Mexico’s leading markets include:
- Industrial production
- Tourism
- Oil
- Agriculture
- Mining
- Minerals
Mexico’s leading sources of foreign revenue include:
- Workers’ remittances
- Tourism
- Oil
- Manufacturing
Tourism
Fonatur, which stimulates and oversees development, and the Mexico Tourism Secretariat are two federal agencies that regulate this industry. Tourism is a major source of foreign currency and plays a vital role in Mexico’s economic development. Tourism accounts for eight percent of Mexico’s GDP, making it one of the top revenue sources. It employs one in five workers. Cancún earns twenty-five percent of Mexico’s tourist revenue.
Mexico has more than twenty million foreign visitors annually:
- 9 out of 10 foreign visitors are from the USA
- 4% are from Europe
- 3% are from Canada
- 2% are from other Latin American countries.
Oil, Mining, and Minerals
OIL
A major source of revenue for Mexico is oil, which is owned and controlled by the federal government. Mexico is one of the top five oil-producing nations. With direct pipe links, it is also the third largest supplier of oil to the USA. Mexico’s oil production company is Pemex. Oil and natural gas production occur in the northeast and along the Gulf Coast.
Minerals
One fifth of the world’s supply of silver comes from Mexico. Many of the mining operations are concentrated in northern Mexico. Other commercially-mined minerals include:
- sulphur
- zinc
- lead
- copper
- gold
- mercury
- uranium
- iron
- coal
Agriculture
Farming, forestry, and fishing employs approximately one-third of Mexico’s working population. Although there are some large agricultural companies, many farmers are subsistence farmers. Mexico’s variation in climate allows it to produce a wide variety of crops including:
- wheat
- cocoa
- coffee
- maize
- sugar
- rice
- rubber
- cotton
- tobacco
- beans
- potatoes
- tomatoes
- asparagus
- avocados
- citrus
- bananas
- pineapples
Mexican fisheries catch and process:
- squid
- shrimp
- prawns
- oysters
- tuna
- sardines
Additionally, Mexico has many ranches which herd beef cattle and also produces honey.
Manufacturing
The USA is Mexico’s most important trading partner. Because of the lower wage costs, many U.S. manufacturers have assembly plants located in Mexico. The top five industries within the manufacturing sector in terms of foreign investment are:
- machinery and equipment (including auto manufacturing)
- chemicals
- food products
- base metals
- textiles and leather
Two-thirds of all foreign investment is in Mexico’s manufacturing sector.
Corporations with Operations in Mexico
The list of international corporations with operations in Mexico is exhaustive. The “who’s who” of corporations all has operations here. This is only a small portion of the extensive list of corporations:
Electronics
- Samsung
- Hitachi
- Sanyo
- Motorola
- Hewlett Packard
- Zerox
Automotive
- Toyota
- Nissan
- Ford
- GM
Retail
- Wal-Mart
- Costco
- Sears
- Dillard’s
- McDonald’s
Consumer
- Kimberly Clark
- Singer
- GE
- Mattel
- Polaroid
Food
- Campbell’s
- Kellogg’s
- Carnation
- Gerber
- Nabisco
Real Estate
- Prudential
- ReMax
- Realty Executives
- C-21
- Coldwell Banker
Workers Remittances
Worker’s remittances play a crucial role in Mexico’s economy. Mexico is the leading receiver of workers’ remittances worldwide with the USA being its primary source. A projected half of U.S. Hispanic immigrants send money to their home countries regularly. In 2004, Mexican citizens sent $16 billion home to their families and villages from money they earned abroad. Remittances exceed foreign direct investment ten to one. Further, remittances trail oil exports only slightly as Mexico’s source of revenue.
Workers remittances have other effects on the economy as well. It helps boost ownership of real estate causing wealth creation. Investments made by remittances bolster local economies thereby creating an infrastructure for sustainable economic and social progress.
It is projected that eight out of every ten dollars sent to Mexico is spent on the essentials of clothing, health care, food, transportation, housing and education. Of this, real estate expenditures account for 40-50% of the spending.
Additionally, remittances have a positive effect on a worker’s hometown. An estimated 27-40% of the capital invested in micro-enterprises comes from remittances. On the other hand, State-sponsored programs have boosted local economies with remittances.
Dos por Uno (Two for One)
Under this program both the state and federal governments will each match every dollar an immigrant puts towards improving infrastructure.
Invierte en México (Invest in Mexico)
This program was launched by Nacional Financiera SNC, Mexico’s largest development bank. It provides free business planning support and professional advice and directs remittances into small business start-up such as supermarkets, gas stations, and drugstores.
Cemex’s Construmex Program
Cemex, Mexico’s leading cement manufacturer, channels a quarter of worker’s remittance funds into the construction of homes and businesses by allowing workers to make installment payments toward the purchase of the building materials. Additionally in also offers professional advice and helps clients to design home plans, schedule building-site delivery, and calculate quantities of materials
Real Estate Buyers
If you are considering purchasing land in Mexico it’s very important to get proper representation.
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