Brief

Mexico At a Crossroads: Is It Missing Out On Its Opportunity For Nearshoring?

Mexico At a Crossroads: Is It Missing Out On Its Opportunity For Nearshoring?

Maximizing the value of nearshoring and accelerating Mexico’s growth and development requires overcoming critical challenges in infrastructure, services, and security.

Von Jordi Ciuró und Armando Flores

Brief

Mexico At a Crossroads: Is It Missing Out On Its Opportunity For Nearshoring?
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  • Nearshoring could significantly drive Mexico’s economic growth, increasing its exports and creating qualified jobs.
  • It seems Mexico hasn’t been able to seize the full potential of nearshoring, for neither Foreign Direct Investment (FDI) nor exports have accelerated their growth in real terms, while emerging Asian economies have outpaced Mexico as nearshoring destinations.
  • Mexico has the potential to accelerate the growth and increase the value of its exports by over 500 billion dollars by 2030.
  • To take full advantage of this opportunity, Mexico needs to address major challenges in sector-wide ecosystems, infrastructure, power and water supply, talent, cost competitiveness, and security.
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First published in August 2024
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