Mexico is currently the 15th largest economy in the world by GDP and is projected by economists to move up in the rankings in the next several decades, reaching number 7 by 2050.
Notable countries Mexico is forecasted to surpass are South Korea, Canada, France, Germany, the United Kingdom and Japan. Therefore, Mexico is forecasted to become much more powerful economically compared to many of their peers.
As an investor and business owner, this is relevant because I want to live, work and invest where economic growth has an upward trajectory. I like the saying that “a rising tide lifts all ships,” to me, it makes everything simpler and my odds of success go way up.
With Mexico’s strong and growing economy, it is attracting a record amount of Direct Foreign investment. 2022 was the best year in over a decade years. Chart
To me, the most notable example being Tesla in 2023; where they announced and are potentially days away from beginning construction of a new Gigafactory in Nuevo León, Mexico. When it’s completed it will be the world’s largest electric vehicle plant and will create up to 6,000 new employment opportunities in Nuevo Leon. The new Gigafactory in Nuevo Leon is also speculated to save Tesla thousands of dollars per vehicle they produce, highlighting why more companies are likely to the same.
Tesla’s project is in the northern region of Mexico, which doesn’t directly impact the economy in Riviera Nayarit, however it does create a “ripple effect,” and there are plenty of interesting projects happening in the Riviera Nayarit and I’ll continue to share some of them in future posts.
If you are interested in an overview of some the geopolitical and economic forces that will likely fuel the growth in Mexico you can check out this video, which, I think, does a pretty good job of highlighting many of the factors at play.
And here is an interesting video about the new Gigafactory in Nuevo Leon.
About the author: Nathaniel Rodriguez is a real estate broker and member of AMPI (Mexican association of real estate professionals) investor and dual citizen of Mexico and the USA. He grew up between Mexico and the US and has lived and worked in San Pancho and the Bahia de Banderas for the last 15 years. For more information, questions or opertunities, you can reach him at firstname.lastname@example.org