2018 Country Focus: Mexico
AMLO was elected as president, his win put a leftist leader at the helm of Latin America´s second largest economy for the first time ever, while the main concerns that could impact the economy are disruptions in NAFTA negociations
Macro-economical environment
Main Indicators
Top Commercial Activities
GDP Growth
- 2016 – 2,3%
- 2017 – 2,2%
- 2018 – 2.2%- forecast
Population: 123 millions
Unemployment Rate: 3,5 %
- Automotive
- Electronics manufacturing
- Agriculture
- Tourism
- Mining
- Aerospace industry
Strengths
- Strong and healthy economic banking system, solid external balance
- Good solvency, moderate debt ratios and flexible exchange ratios
- Structural business enviroment exceeds Latin American average
- Member of NAFTA, OECD, The G20 and the Pacific Alliance
Weaknesses
- High export concentration to US market (more than 80% of exports go to US).
- Skewed income distribution, high poverty levels
- Poor domestic Security linked to Drug Traffic
- Rule of Law and control of corruption (Below Latin America´s average)
Trade structure
Top 5 countries of exports
- United States (81%)
- Euro area (4%)
- Canada (3%)
- China (1%)
- Japan (1%°
Top 5 countries of imports
- United States (41%)
- China (18%)
- Euro Area (9%)
- Japan (5%)
- South Korea (4%)
What's new?
Andres Manuel Lopez Obrador was elected as president, his win put a leftist leader at the helm of Latin America´s second largest economy for the first time ever. The main concerns that this could bring, are a higher budget deficit, increase in public debt, disruptions in NAFTA negotiations ( tariffs and search for nontraditional markets), exchange rate volatility for importers, reduced or restricted bank appetite/increase interest rate.
Trade Credit Insurance
Credit Insurance Market
- Focused on ground-up insurance
- Low penetration rate
Available products
- Ground-up
- Medium-Term
- Debt Collections
- Excess of Loss
Insolvencies
- Main insolvencies occured in the energy sector with a total of USD 7,5M
- Average Day Sales Out (DSO): 120 days
- Average credit terms: from 30 to 90 days
Main Players and ranking
37% Atradius
33% Solunion
28% Coface
3% Cescemex
All the written material is the property of Rimac, this article has been written by Mónica Anabel Gordillo Rincón.
Author of the photograph : Alejandro Islas Photograph AC