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What challenge does Mexico's major industries face?

Updated: 8/20/2019
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10y ago

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Some of them would be:

  • Competitiveness: Even if Mexico has addressed competitiveness issues by improving its labor and fiscal laws, it still faces huge challenges when competing against the BRIC bloc (Brazil, Russia, India, China) for economic opportunities, markets and foreign investment from developed countries. As an example, in terms of competitiveness (2013), Mexico is ranked in the 53rd spot, out of 144 countries. For comparison purposes, Brazil, Russia, India and China are on the 48th, 67th, 59th and 29th spots, respectively.
  • Economy: World economic bust compounded with high dependence on the United States as receiver of Mexican exports. Although during recent years Mexico's economy has had a decent growth (3.9% in 2012), any downturn on the US economy would severely impact Mexico's potential growth.
  • Infrastructure: Mexico has improved its infrastructure, including paved roads, ports and airports, but these are not enough to fulfill the requirements of the industry. For example, motor vehicle numbers grew by 9.3% during the first seven months of 2013,
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