Car Production
0
1000
2000
3000
4000
2013 2014 2015
Productioninthousands MexicoBrazil
Source:AMIA– Asociacion Mexicanadelaindustria automotriz.
Source: Eurostat (EU27 projections)
Mexico’s Expanding Middle Class
Source:BBVA.Notes:Incomerangesaredefinedhomogenouslyforallcountries.Poorisupto$1,000USDperyear,lowincomeisfrom$1,000to$5,000USD,lowmiddleclassisfrom$5,000to$15,000USD,mediummiddleclassisfrom$15,000to$25,000USD.highmiddleclassisfrom$25,000to$40,000USD,andaffluentisover$40,000USD.
0
10
20
30
40
50
2020
$40,000+
$5,000‐15,000
Percentofpopulationin2020,byincomerange
<$5,000
$25,000‐40,000
AffluentPoor
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Reforms are paying off
3Source: ProMéxico with information from the SHCP. Annual variation, December 2015.
40.7% in international longdistance rates
16.8% in mobile rates
16.8% in landline rates
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Engineering Graduates in 2015 (per 1,000 inhabitants)
Source: Forbes, World Economic Forum.
Some Current Highlights: Engineering Graduates (1/2)Mexico is one of the leading countries in America in producing Engineers…
Engineering Graduates in 2015
1.19
0.93
0.75 0.73
0.37 0.33 0.19 0.17
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
Chile Mexico United States Canada Brazil Argentina Guatemala Uruguay
237,826
113,944
74,539
25,722 21,037 13,603 2,943 590
0
50,000
100,000
150,000
200,000
250,000
United States Mexico Brazil Canada Chile Argentina Guatemala Uruguay
Mexico’s High-end Technology Trade
0
10
20
30
40
50
60
70
$U.S.billions
ExporttoU.S. ExportRestoftheWorld ImportfromU.S.
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• The manufacturing sector, particularly the automotive industry, has boosted industrial activityin Mexico since the 2009 crisis
• Despite global weaknesses, the manufacturing sector will remain competitive during thecoming 5 years due to current investments and competitive unit labor costs
• Mining continues to weight heavily in the industrial activity in Mexico, because of the generaldecrease in commodity prices and due to the fact that three fourths are oil
Industrial Activity by Sector (2008=100)
Source: INEGI.
Manufacturing Exports (Jan 2008=100)
Mexico’s Competitiveness: Industrial ActivityA competitive manufacturing sector
85
95
105
115
125
135
2008 2009 2010 2011 2012 2013 2014 2015 2016
Mining Electricity Construction Manufacturing
507090
110130150170190210230250
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Manufacturing Automotive Other
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Improvement or no changeReduction of 1 to 4 pointsReduction of 5 to 9 points
Reduction of 10 to 14 pointsReduction of 15 or more pointsCountries not part of the 25 largest exporters
Mexico and the US are the winners in competitiveness at the global level
Source: “The Shifting Economics of Global Manufacturing”, BCG (2014). The labor component is adjusted for productivity.
“Rising Global Stars”
Mexico’s Competitiveness: Manufacturing ComparisonChange in manufacturing costs from 2004 to 2014, 25 largest exporters (index)
ChicagoAssemblyPlant 1924 KansasCity,MO 1951 Oakville,Ontario 1953 LouisvilleAssemblyPlant 1955 MichiganAssemblyPlant 1957 Cuautitlan,Mexico 1964
Active Ford Plants in North America
KentuckyTruckPlant 1969 OhioAssemblyPlant 1974 Hermosillo,Mexico 1986 FlatRockAssemblyPlant 1987 DearbornTruckPlant 2004 SanLuisPotosi,Mexico 2018
Advanced Economies vs. Emerging and Developing Economies
Source: International Monetary Fund.
30
35
40
45
50
55
60
65
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
ShareofworldGDP(%),basedonpurchasing‐power‐parity(PPP)
AdvancedEconomies
• LatinAmerica• Africa• MiddleEast• Asia(excl.Japan)
Emerging&DevelopingEconomies{
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US imports from selected countries (% of total)
Average manufacturing unit labor cost in China and Mexico (USD per hour)
Mexico’s Competitiveness: Market Share/Lowering Costs relative to China
Source: Economist Intelligence Unit, US Department of Commerce.1) Estimate based on Global Insight.
China is losing competitiveness because of: an increase in wages larger than its productivity growth, derived from its demographics, higher transportation costs and the Yuan’s appreciation
Mexico
China
Canada
1990 2000 2014 2018
6.1
3.1
18.4
11.2 12.5 17.0
8.2 19.9 15.8
19.0 14.8 13.9
Japan 18.1 12.0 5.7 5.4
California’s Changing FacesCalifornia’s Changing FacesPopulation 2014Population 2014
Blacks2.5million
Asians5.6million
Hispanics15.0million
European14.9million
Sources:Moody’s,U.S.CensusBureau.
California’s Changing FacesCalifornia’s Changing Faces
Black6.5% Asian45.0% Hispanics35.6%
European(7.0%)
Sources:Moody’s,U.S.CensusBureau.
Population Growth (2000 - 2014)Population Growth (2000 - 2014)
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Some Current Highlights: TourismNumber of International Tourists (left axis) and Revenues from International Tourists (right axis)
Source: World Tourism Organization.
The number of international tourists visiting Mexico increased considerably since 2013, partly explained by the introduction of low cost carriers into Mexico
Mexico is now the #9 tourist destination in the world and it is the one with the highest relative growth in visitors in the last 3 years
USD$ BMillionPeople
21.9 21.4 21.622.9 22.3 23.3 23.4 23.4 24.2
29.332.1
18.3 19.120.7 21.7
18.9 20.0 20.021.5
23.7 24.2
29.1
0
5
10
15
20
25
30
35
0
5
10
15
20
25
30
35
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Top 10 Visited Countries in 2015 (millions)
2012‐15 CAGR
86.3
77.968.1
56.950.8
39.335.033.9
32.1
31.6
FranceUSASpainChina
ItalyTurkeyGermanyUKMexicoRussia 8.3%
11.1%5.1%4.9%3.4%3.1%0.0%5.9%5.4%1.7%
Mexico’s Population
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