World of Tooling – Spotlight Brazil and Mexico
The Mexican economy and industry
Mexico's GDP is the world's 15th-largest economy with a GDP per capita of approximately €9,500 in 2015. Over the last three years, the economy grew moderately by 2.9% per year. The outlook for 2016 is positive. In 2012, the country exported products and goods worth €331bn. The three main export goods were oil, food and automobiles. The country is rich in natural resources like oil and gas and possesses many mineral resources like silver, bismuth and lead. The automotive sector has experienced rapid growth and is an essential driver of employment. Investments worth €22bn were announced for Mexico by automotive OEMs over the last four years. Its strategic geographical location and the ports to the east and west also have a positive effect. Moreover, there is not only a free trade agreement (NAFTA) between Mexico, the U.S. and Canada, but also an agreement between Mexico and the EU. An automobile with a value of €55,000 exported from the U.S. to Europe would entail €5,500 in custom duties, which is not charged for the same automobile originating from Mexico. In 2011, the wage level was on average at €13,500 and, despite moderate growth in engineering-related jobs, the country still shows a wage-cost advantage over the U.S. of €500 to €600 per employee per month. Mexicans work an average of 2,239 hours every year – almost 30% more than the average of all industrialised nations.