Country Analysis Report - Mexico - In-depth PESTLE Insights

Introduction

The country analysis report on Mexico provides a wide array of analytical inputs to analyze the country’s performance, and the objective is to help the reader to make business decisions and prepare for the future. The report on Mexico analyzes the political, economic, social, technological, legal and environmental (PESTLE) structure of Mexico. The report provides a holistic view of Mexico from historical, current and future perspective. Insightful analysis on critical current and future issues is presented through detailed SCPT (strengths, challenges, prospects and threats /risks) analysis for each of the PESTLE segments. In addition, the PESTLE segments are supplemented with relevant quantitative data to support trend analysis. The PESTLE country analysis report series provides an in-depth analysis of 50 major countries.

Features and Benefits

• Understanding gained from the country analysis report on Mexico can be used to plan business investments or market entry apart from a holistic view of the country.
• Political section on Mexico provides inputs about the political system, key figures in the country, and governance indicators.
• Economic section on Mexico outlines the economic story of the country to provide a balanced assessment on core macro-economic issues.
• Social section on Mexico enables understanding of customer demographics through the income distribution, rural-urban segmentation and centres of affluence, healthcare and educational scenario in the country.
• Technological section on Mexico provides strategic inputs on information communications and technology, technological laws and policies, technological gaps, patents data and relevant laws.
• Legal section on Mexico provides information about the legal structure, corporate laws, business set-up procedures and the tax regime.
• Environmental section provides information on environmental policies in Mexico and the performance in terms of important environmental indicators.

Highlights

PESTLE analysis of Mexico identifies issues that affect the country’s performance through the prism of current strengths (strengths), current challenges (weaknesses), future prospects (opportunities) and future risks (threats).

The political landscape discusses the evolution of the political scenario in Mexico in different periods. The economic, social, foreign and defence policies are considered in the political landscape section. It also discusses the performance of the country as per World Bank Governance Indicators.

The economic landscape describes the evolution of the economy of Mexico in different periods. It also examines the country’s performance in terms of GDP growth, composition by sector (agriculture, industry and services), fiscal situation, international investment position, monetary situation, credit disbursement, banking sector and employment. The economic landscape also explains the financial system in the country, especially with regard to financial authorities/regulators.

The social landscape covers the demographics, education and healthcare scenario in Mexico. The social welfare policies of the government along with the country’s performance in terms of healthcare, income distribution and education are also provided.

The technological landscape discusses the structure and policies in terms of Intellectual property, research & development, technology agreements/pacts; and policies related to the promotion of technology in Mexico.

The legal landscape examines the structure of the judicial system, legislation affecting businesses, tax regulations, labor laws, trade regulations and corporate governance in Mexico.

The environmental landscape in Mexico discusses the environmental regulations and policies of the country. The performance of the country in terms of in terms of environmental indicators and impact of environmental policies is also examined.

Mexico’s economy is closely integrated with that of the US, which makes it highly vulnerable. Moreover, the country’s exports to the US contribute 29% of its GDP, which makes its economy even more dependent on the US economy. Mexico registered a CAGR of around 3% during 2003-08. The GDP growth of the country came down from 3.4% in 2007 to 1.5% in 2008, due to declining external demand; subsequently, the economy contracted by 6% in 2009. However, the Mexican economy rebounded with growth of 5.5% in 2010, driven by government stimulus packages and measures introduced late in 2009, and also by external demand. According to Datamonitor forecasts, the economy will grow by 4.7% in 2011.

Your key questions answered

• What is the outlook in terms of political stability, policies towards businesses, external front and popularity of government in Mexico?
• What is the economic performance of Mexico in terms of GDP growth, fiscal situation, international investment position, monetary situation, credit disbursement, and employment among other economic indicators?
• What is the performance of Mexico in terms of healthcare, income distribution and education?
• What is the performance of Mexico in technology intensive sectors like telecommunications and information technology, patents and R&D expenditure trends?
• What is the legal structure in Mexico and are the laws conducive for investment?
• What is the performance of Mexico in terms of environmental indicators and impact of environmental policies?