Enjoy a 15% discount on all purchases until the 31st of March 2023 using the promo code EOFWEB22 at check out!

Economy Our insights on the global economy, business environment and the world’s major cities inform business strategy and pinpoint opportunities and risks.

Mexico Business Summit: Defining Mexico’s Options

An Hodgson Profile Picture
An Hodgson Bio

Euromonitor International was pleased to contribute to the 15th Mexico Business Summit on October 22-24, 2017 in San Luis Potosi. Speakers – including Enrique Peña Nieto, President of Mexico; Carlos Slim Helú, Honorary Chairman of Grupo Carso; José Antonio Meade, Finance Secretary of Mexico; John J. Sullivan, US Deputy Secretary of State; Bart Van Ark, Executive Vice President, Chief Economist and Chief Strategy Officer at The Conference Board; Karl Rove, Former Deputy Chief of Staff and Senior Advisor to President George W. Bush – explored Mexico’s options for the future, not only with respect to its relationship with the USA, but also in the context of the forthcoming Mexican presidential election and its strategic priorities in the region and beyond.

I participated in the session “How to maintain consumer demand to support economic growth”. Together with Armando Uriegas, CEO of Nielsen Mexico & Nielsen Ibope Mexico; Enrique Zorrilla, Chairman and CEO of Scotiabank México; and Yael Smadja, CEO of Smadja & Smadja USA, we examined Mexico’s changing consumption patterns; the role of finance, technology and e-commerce in supporting consumer expenditure; and measures to boost middle class purchasing power. In the face of more challenging external conditions, boosting domestic consumption makes a lot of sense because it will make the highly-open Mexican economy more resilient.

Spending pattern of middle-income households bar graph of different industries in2016 and 2030; Discretionary spending as a share of spending by middle income segment line graph from 2016 to 2030; quote: In 2030, Mexico's median disposable income is set to reach US$19,344 per household, representing a modest real gain of 1.7% per year between 21017 and 2030.

Other key themes arising from the summit include:

  • In dealing with Trump’s USA, Mexico needs to look beyond the White House and reach out to communities, business leaders, governors and other day-to-day stakeholders whom Washington DC will have to listen to. Mexico should also consider all aspects of its relationship with the USA (including trade, immigration, security and the environment) and leverage them in negotiation with the USA.
  • Mexico needs a diversification strategy in terms of the economy, foreign relations and business partners. Without abandoning the USA, Mexico needs to establish strategic alliances with Asia, Canada, Europe and Latin America. However, while China represents a great diversification opportunity, there is growing anxiety among the Mexican business community with regards to intensifying competition from China.
  • The need to move the Mexican economy up the value chain – with robust investment, training and education, integration of women into the labour force, innovation, digital transformation and Industry 4.0, all of which can in turn support the formal economy, generate jobs, enhance productivity, and increase incomes in Mexico.
  • Corruption and the weak rule of law continue to be Mexico’s most stubborn challenges, although the government has taken steps to fight corruption and improve the regulatory environment. In 2016, Mexico ranked 134th (out of 214 countries) in the World Bank Rule of Law Index.
  • Mexico is facing a time of uncertainties both at home and abroad. Whoever is elected as the next President of Mexico in 2018 will be facing strong opposition. Abroad, Mexico is facing acute nationalism that hinders its diplomatic and commercial relationships with other nations. The next President will need to establish clear objectives and long-term action plans that transcend their own political party in order to bring the country together.
Interested in more insights? Subscribe to our content

Explore More

Shop Our Reports

Occasion Innovation in Snacks: Routine Concepts

As consumers consider and preplan their snack purchases more in lieu of economic challenges, anchoring innovations around consumer routines and need states has…

View Report

Global Industrial Trends

This report provides a global overview of industrial trends from 2022 through to 2027 for the key manufacturing and service sector industries. Insights analyse…

View Report

Global Inflation Tracker: Q1 2023

This report examines inflation levels and drivers globally and in key countries. In 2023, global inflation is expected to ease from its peak in 2022, but…

View Report
Passport Our premier global market research database with detailed data and analysis on industries, companies, economies and consumers. Track existing and future opportunities to support critical decision-making across all functions within your organisation Learn More