febrero 14 2012 - unam€¦ · macroeconomic stability mexico has reached the pre-crisis economic...
TRANSCRIPT
![Page 1: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/1.jpg)
Febrero 14 2012
![Page 2: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/2.jpg)
Mexico
Location
Competitiveness
Market
Business environment
Macroeconomic stability
¿WHY IS MEXICO ATTRACTIVE?
![Page 3: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/3.jpg)
MACROECONOMIC STABILITY
Mexico has reached the pre-crisis economic levels without solvency issues
IMF estimates bigger economic growth for Mexico in 2011 than for the US and Canada
Non petrol exports have positive growth rates, since 2009 those export have grown about 57%
Manufacture production has grown too, since 2009 a 55% growth has been shown.
Because of our macroeconomic stability…
![Page 4: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/4.jpg)
the numbers prove it,
105,1%
85,3% 100,4%
116,0% 131,0%
2008 2009 2010 2011 2012
GDP size (based on yr 2007)
107,0%
84,6%
109,6% 117,3%
126,8%
2008 2009 2010 2011 2012
Exports (based on yr 2007)
MACROECONOMIC STABILITY
![Page 5: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/5.jpg)
MACROECONOMIC STABILITY
and our central bank policy is working…
![Page 6: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/6.jpg)
1,1%
1,3%
1,5%
2,3%
3,0%
3,0%
3,6%
4,1%
China
Korea
Poland
Mexico
Brazil
Colombia
India
Turkey
Country risk 2011
Source: Aswath Damodaran, Country Default and Spreads and Risk Premiums 2011 World Economic Forum
8,5 16,9
22,1 30,3
42,1 48 51
72,5 73,1 81,6 83,2
Public Debt as % of GDP
MACROECONOMIC STABILITY
![Page 7: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/7.jpg)
BUSINESS ENVIRONMENT
27 APRIS 11 FTA 6 ACE
Mexico has 11 FTA with 44 countries, representing 67% of the world GDP.
Because we are leaders in FTA…
FTA
Countries
FTA
India USA China Mexico Brazil Colombia Korea
2th place in the world
![Page 8: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/8.jpg)
And an important destination for FDI…
1,22
1,22
1,24
1,25
1,26
1,26
1,28
1,29
1,29
1,29
1,32
1,32
1,32
1,33
1,35
1,43
1,53
1,64
1,67
1,93
Indonesia
Malaysia
Russia
Czech Republic
Other gulf countries
Romania
Hong Kong
United Arab Emirates
Vietnam
France
UK
Canada
Mexico
Australia
Poland
Germany
Brazil
India
US
China
Confidence Index 2010
Mexico was ranked 8th
in terms of FDI confidence index by AT Kearney.
- + confidence Source: FDI Investing Index, AT Kearney
BUSINESS ENVIRONMENT
![Page 9: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/9.jpg)
MARKET
We are a BIG country,
in population and economy
Population 2010 (millions)
GDP 2010 (billion dollars)
![Page 10: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/10.jpg)
MARKET
… with big opportunities in regional markets.
Just the south of USA and the north of Mexico hold a population of 84 million
![Page 11: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/11.jpg)
COMPETITIVENESS
Mexico; $350,27
China; $356,99
0
100
200
300
400
500
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Wages (per month in USD)
We have competitive labor costs…
![Page 12: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/12.jpg)
… and manufacturing costs too COMPETITIVENESS
Compared to the US
![Page 13: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/13.jpg)
COMPARATIVE TAX RATES: A SMALL TAXPAYER BASE EXPLAINS WHY MEXICO HAS SUCH A LOW TAX COLLECTION-TO-GDP RATIO,
DESPITE COMPARATIVELY SIMILAR TAX RATES VERSUS EMERGING MARKET PEERS.
Mexico’s Tax structure evolve to match developed countries
![Page 14: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/14.jpg)
AT BBB BY S&P, MEXICO IS RATED ONE NOTCH ABOVE
INVESTMENT GRADE
![Page 15: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/15.jpg)
WITH AN ESTIMATED DAILY TURNOVER OF MORE THAN US$20 BILLION (US$20 BILLION IN THE SPOT MARKET) THE PESO IS
THE MOST LIQUID CURRENCY IN LATIN AMERICA AND ONE OF THE MOST LIQUID GLOBALLY, JUST AFTER HKD, NOK, AND NZD.
![Page 16: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/16.jpg)
We are a highly skilled country
0,39
0,45 0,47 0,5
0,58 0,57 0,57 0,62 0,64
0,61
0,22 0,2 0,2 0,21 0,23 0,23 0,23 0,23 0,22 0,22
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
engineers graduated per 1,000 inhabitants
Mexico USA
More than 90,000 engineers and technicians graduate every
year from science and technology programs.
COMPETITIVENESS
![Page 17: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/17.jpg)
COMPETITIVENESS
With highly skilled companies
OECD
![Page 18: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/18.jpg)
LOCATION
No other country is closer to the primary ports in the world
Days port to port
Target Germany Brazil China Colombia Korea USA India Mexico Poland Turkey
New York 11.0 15.0 32.0 6.0 21.0 - 25.0 5.0 12.0 16.0
L.A 25.0 23.0 18.0 10.0 17.0 - 31.0 4.0 26.0 28.0
Rotterdam - 17.0 32.0 15.0 33.0 11.0 20.0 16.0 1.0 10.0
Yokohama 35.0 35.0 4.0 24.0 3.0 15.0 17.0 19.0 36.0 27.0
Rio de Janeiro
17.0 - 31.0 12.0 34.0 15.0 24.0 15.0 18.0 19.0
Average 22.0 22.5 23.4 13.4 21.6 13.7 23.4 11.8 18.6 20.0
…at the center of the world
![Page 19: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/19.jpg)
With competitive sectors COMPETITIVENESS
High competitiveness and deep impact sectors
Professional and Entrepreneurial Program
Domestic Market Development
1. Transport equipment manufacturing.
1. Vegetables, fruits and flowers. 1. Housing
2. Machinery and Equipment manufacturing.
2. Software 2. Retail
3. Electric and Electronic equipment manufacturing.
3. Research and Development 3. Financial Services
4. Mining (excluding oil & gas) 4. Arquitecture, Engineering and
design services.
5. Business Consultancy Services. 5. Music, film industry, radio y television.
6. Food Industry 7. Health Services 8. Tourism
Development Platform
1. Infrastructure 2. Telecommunications 3. Academic Services
![Page 20: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/20.jpg)
Aerospace
KEY INDUSTRIES
Highest investment
attraction in aerospace manufacturing during the last decade
6th destination in the world for
engineering and development investment
More than 240 companies are settled in the Mexican aerospace industry,
270% more than those established in the country in 2005.
Mexico is top 10 provider to the American Aerospace Industry,
better than all BRIC countries.
And global leaders in key industries
![Page 21: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/21.jpg)
KEY INDUSTRIES
Automotive
7th largest exporter of motor
vehicles in the world (in value)
Twice as big as Brazil and
India combined
Key supplier to the US automobile market:
11% of all cars and light trucks sold in the US are built in Mexico
30% of all imported automobiles and light trucks (2010)
85% of all commercial vehicles (2009) (includes US brands manufactured outside the US)
31.7% of auto parts imported
… again…
![Page 22: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/22.jpg)
KEY INDUSTRIES
… and again…
We are the Third exporter of mobile telephones, with exports
valued at $9,860 million dollars in 2010
Mexico exports more manufactured products than the rest of LATAM combined
Electric – Electronics
Largest exporter of Flat
Screen TV sets in the world in US Dollars
Second largest exporter
of refrigerators and freezers
![Page 23: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/23.jpg)
Energy
… and again…
24.1% of the total installed
capacity of electrical power generation is through renewable energies
Wind Power: estimated potential of 71,000 MW Solar Power: daily solar irradiance between 5 - 6 KW/h/m2 , 25 km2 in Sonora or Chihuahua are enough for generating the
whole country´s energy requirement
Hydraulic Power: estimated potential of 39 GW Geothermal Power: among the top five leaders in the world
Mexico´s potential by energy type:
COMPETITIVENESS KEY INDUSTRIES
![Page 24: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/24.jpg)
Mexico advantages for
the manufacturing
industry
Quality : highly skilled
country
Scale: market
opprortunities
Flexibility
Shared manufacture processes among
industries
Geographic scope : center of the world
Partnering global leaders in
key industries
¿Why is Mexico attractive for the any manufacturing industry?
![Page 25: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/25.jpg)
2
And of course you have
ProMéxico
• ProMéxico coordinates the relations between the investor and other
government dependencies to facilitate the success of the investment project
Investor
![Page 26: Febrero 14 2012 - UNAM€¦ · MACROECONOMIC STABILITY Mexico has reached the pre-crisis economic levels without solvency issues IMF estimates bigger economic growth for Mexico in](https://reader034.vdocuments.us/reader034/viewer/2022042120/5e9a693b9add350bff13a85a/html5/thumbnails/26.jpg)
MEXICO IS THE OPPORTUNITY