Population (2017): 47.7 million GDP (2017): US$1.15 trillion World Bank “Ease of Doing Business” Rank (2018): 59th Bilateral Trade with Singapore: S$698 million Trading Partner Rank (2017): Singapore's 6th largest trading partner in Latin America, and Singapore’s 64th largest trading partner worldwide
Mexico is the 11th most populated country with 126 million inhabitants1 and 15th largest market by GDP just ahead of Indonesia in 20182. Mexico has a middle class population of approximately 50 million and growing. It is the second-largest economy in Latin America after Brazil, and has a free market economy with an increasingly competitive private sector.
Mexico’s current economic strengths include an open economy; supply chain integration with North America, which has led to the development of a qualified labour force in the manufacturing sector; a strong base in energy production (Mexico was the 12th largest producer of oil globally in 20183); and a robust private sector of home-grown companies which are becoming increasingly global.
1 United Nations, 2019 2 World Bank, 2019 3 U.S. Energy Information Administration, 2019
As an investment destination, Mexico is an open economy. It has a network of 10 Free Trade Agreements (FTAs) with 45 countries which account for more than 90% of its total trade with the world. Singapore companies can leverage its competitive costs, highly-skilled young workforce to address markets in its proximity such as United States and Canada. There are also opportunities for Singapore companies to partner with Mexican SMEs, conglomerates, and MNCs operating in Mexico in the consumer goods, technology, trade, and infrastructure development sectors.
Mexico is an attractive market due to its macroeconomic stability, low inflation, size and strength of its domestic market, economic growth, and proximity to key global markets.
Mexico's current government has made economic reforms a priority, and has implemented sweeping education, energy, financial, fiscal, and telecommunications reform legislation, among others, with the long-term aim to improve competitiveness and economic growth across the Mexican economy. Mexico has also held public auctions of exploration and development rights to select oil and gas resources since 2015 as part of reforms that allow for private investment in the oil, gas, and electricity sectors.
Southeast Asia and Latin America share many market similarities. If you are a Singapore scale-up with proven solutions, Latin America could be your next market.
With an extensive corporate network in key markets in Latin America such as Colombia, Chile, Ecuador, Peru and Mexico, Latin Leap is a VC studio based in Colombia. Latin Leap’s Leap2Latam program will connect you to partners and customers and provide business set-up support to launch your business in the region.
Apply for the Leap2Latam program here.