It’s now 2023, and the global economy begins the year with seemingly immense challenges in the horizon. Mexico’s forecast, inescapably tied to the fates of both the US and global market, remains cautious but optimistic. Challenges still remain around unpopular policy decisions by the current administration (on its way out, worth noting), but that does not seem to deter large investors from looking at the country as a profitable destination for FDI.
Labor and tax, alongside trade and customs, will continue to be key areas to consider in the Mexican market, but without the shocks experienced in recent years due to policy decisions such as the Subcontracting Reform. Companies should pay close attention to these elements for their Mexico operations, as increased oversight and compliance audits can be expected.
While the prospect of a US recession is still contested by analysts, Mexico’s unique geographic position, strong international trade architecture, and an ever-increasing capable workforce, ensure that opportunities are still there to be had.