Country Profile: Mexico

1
Country ProfileMexico

• An IntroductionUpdated Jan 2005Presentation
  Created and Publishedby Mexperience
• www.mexperience.com

Our thanks to Rodger Scott for his help providing
some of the information included in this
presentation
2
Facts Figures

• Size Just Under 2m sq km
• About the size of Western Europe
• Location Southern Border of the USA
• Belize, Guatemala to the South
• Part of the North American Continent
• Language Spanish is the official language
• English spoken widely in business circles
• Religion c.90 Roman Catholic
• Church and State separate
• Government Federal Republic
• Democratically Elected President
• Bicameral Chamber
• President Felipe Calderon Hinojosa, took office
  Dec. 1 2006 for non-renewable 6-year term.

3
Economic Snapshot

• Currency Peso
• 100 Centavos 1 Peso Common Symbols MXP MX
  MN
• GDP Nominal GDP for 2006 US850bn
• Using year-end exchange rate of US1 MX10.62
• GDP grew 4.8 in 2006 compared to 2005
• Government estimate for 2007 is 3.6
• Inflation 2006, 4.1
• Estimated at 3.5 for 2007
• Major Trading Partners
• USA, Canada, UK, Japan
• Key Trade Agreements
• NAFTA North American Free Trade Agreement
• EFTA European Free Trade Agreement
• FTA with Japan

4
Main Economic Activities

• Industry
• Oil Gas
• Metals Mining
• Automotive, Vehicles and Auto Parts
• Textiles, Clothing Footwear
• Chemicals and Petrochemicals
• Electrical and Electronic Goods
• Food Processing
• Tourism
• Agriculture
• - Sugar, Coffee, Tomatoes, Avocados, Tobacco

5
Free Trade Agreements

• NAFTA
• Came into force January 1994
• Trade has more than doubled since agreement in
  place
• 80 of Mexicos trade is with the US
• Primary Exports Electronics, Automotive, Oil,
  Textiles
• EFTA
• Began July 2000
• Duties on 50 of goods eliminated immediately
• Remainder Currently Maximum of 5 Zero by Jan
  2007
• Other Trade Agreements
• Japan, came into force in April 2005
• Mexico has free trade agreements with more than
  40 countries
• One of the worlds most open economies in the
  world

6
Key Demographics

• Population 103 million (2005 census)
• Average annual population growth 1 from
  2000-2005
• Median age of the population 24
• Number Of Homes
• 24 million in 2005
• Average 4.2 persons per home
• Workforce
• 44.4 million as of Sept. 30, 2006
• Unemployment rate 4
• Worker / Skills shortages in the north of Mexico
• Education
• Population over 15 with college education 13.6
• Population over 15 with High School completed
  18.5

7
Social Issues

• Big emphasis on education
• Health reforms
• Being accelerated to restructure and invest in
  health systems
• Water and effluent
• A key issue
• Major investment required expected to
  materialise
• Tax Collection
• Overhauls being planned
• Special programs for the poor south
• In particular states of Oaxaca, Guerrero,
  Chiapas, Michoacan
• Poverty, Crime, Drugs
• Being tackled at high level with fundamental
  reforms

8
Why Mexico?

• Good Place to do Business
• Friendly people, open markets, untapped potential
• Excellent support available
• Information, resources, contacts, professionals
• See Mexperience.com Business Center for details
• Not as far away as you think
• Plenty of daily flights to Mexico
• Good internal transport and communications
  infrastructure
• Excellent Facilities Positive Approach
• Access to the latest in accommodation technology
• First class amenities, local officials are
  usually keen to help your investment succeed
• Excellent quality of life if you or your staff
  need to live there for a time, to oversee
  operations