With strength found in its responsible economic, financial and commercial policies, Mexico has firmly solidified itself among the world’s largest and strongest economies. Pair this with its rich cultural history and booming software space, and Mexico is most definitely one of the ideal locations to invest in currently.
Here’s why.
Diverse economy
Mexico has a diverse economy with strengths in manufacturing, automotive and aerospace, making it less vulnerable to economic shocks in any one industry, and a robust nation for investment. Currently, the country sits at 14th in the world in terms of GDP, according to the International Monetary Fund (2023).
Their software development landscape in particular is experiencing rapid growth, which presents plenty of opportunities for software companies in the region to grow.
Strong area for software development
Mexico is embracing technology across diverse sectors and the software market in the country is expected to grow at a rate of 2.18% between 2023 and 2028, Statista reports.
This growth is due to the rise of online shopping which is seeing e-commerce platforms, payment processing and logistics solutions booming. Fintech companies are also rapidly tapping into the unbanked population with mobile banking and payment apps to provide essential financial services.
Elsewhere, the healthcare sector is using advanced software to help produce and manage medical records, while the logistics sector is benefiting from new and innovative optimisations of global supply chains.
Talented workforce
The country has a large pool of skilled and talented software engineers and developers, many of whom have received training in top universities in Mexico and abroad. The country has a strong tradition of technical education, with many universities offering degrees in engineering and technology.
Strategic location
Strategically located between North and South America, Mexico has access to large markets in both regions. It also has a strong trading relationship with the United States, its largest trading partner, and is part of several free trade agreements that provide access to other global markets.
Robust trade agreements
Mexico is fortunate to have strong trade agreements in place, including:
- United States-Mexico-Canada Agreement (USMCA)
- Pacific Alliance
- European Union-Mexico Free Trade Agreement
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
- Latin American Integration Association (ALADI)
They also have bilateral free trade agreements with several countries, including Japan, Israel, Panama and Costa Rica. This offers a strong advantage to companies who choose to invest here.
Favourable business environment
In recent years, Mexico has taken steps to improve its business environment, including labour law reforms, tax reforms and improvements to the telecommunications sector. The country is also working to reduce bureaucracy and streamline the process for starting and operating a business.
Cost competitiveness
Compared to many other countries in the region, Mexico has a relatively low cost of labour and production, making it an attractive location for manufacturers and software developers.
Vesta’s view on Mexico
At Vesta, we consider Mexico to be a country well worth investing in. The nation has a skilled workforce and commands a strategic location with strong trade agreements in place, which are vital for significant growth. There are plenty of opportunities for the software industry to grow within Mexico’s thriving economy and we look forward to seeing the market go from strength to strength.
As we look to supercharge our expansion strategy in Latin America, we would love to speak with more software companies who are looking to pursue the next step in their journey. Get in touch with our team today to start a conversation.
