WORLD OF INDUSTRIES 02/2018

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Mexican manufacturing takes the center stage at Hannover NEWS AND MARKETS At Hannover Messe, the spotlight will be on Partner Country Mexico, as the Latin American country showcases its manufacturing prowess with cost effective innovative products and technological developments, the key factors that make it an attractive investment destination. Author: Sushen Doshi, International correspondent for World of Industries Mexico, with a population of more than 120 million is generally seen as an advanced emerging market. It is the world’s 15 th -largest economy achieving a GDP slightly more than $ 1 trillion in 2016. It is the second-largest economy in Latin America, world’s 13 th largest exporting and 12th largest importing nation. About one third of Mexico’s GDP comes from industry. In terms of industry, the country’s main strengths lie in automobile and automotive parts manufacturing, aerospace, electrical engineering, oil, natural gas and chemicals. It is a major producer of automobiles, and is in fact the world’s fourth largest exporter in the automobile sector. The energy market reform process, which began in 2013, has given a new lifeline to the country’s oil, gas and energy sectors. The reforms have brought various private investors into the energy market alongside the country’s state-owned companies. Over the past seven years, Mexico’s overall energy requirement has grown by 25 %. This growth includes a 50 % increase in the country’s electricity requirement. While this energy requirement is currently met primarily from oil and gas, the government now has a diversification strategy aimed at generating 35 % of the country’s total energy requirement from renewables, such as wind, solar, hydro power, and nuclear by 2024. The growth areas of the Mexican economy include renewable energy, mechanical engineering, healthcare and logistics. Of particular interest is the logistics industry, which currently generates about 15 % of Mexico’s GDP. Mexico is currently working 12 WORLD OF INDUSTRIES 2/2018
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WORLD OF INDUSTRIES 02/2018

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