Mexico is ranked among the world’s top fifty economies for ease of doing business, and shows improvement for the fourth consecutive year, according to a report just released by The World Bank’s “Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises” report.
The World Bank’s “Doing Business” report joins other internationally well-recognized sources, such as the World Economic Forum and the IMD, that demonstrate how Mexico is advancing in global competitiveness. As MexicoToday reported in recent months:
• Mexico has improved 13 positions in the past two years, as reported by The World Economic Forum.
• Mexico has improved 10 positions in the past two years, as reported by the IMD
• Mexico has improved six positions in the past two years, as reported by The World Bank’s Doing Business report
The “Doing Business” report assesses regulations affecting domestic firms in 185 economies, including Mexico, and ranks the economies measured by ten areas of business regulation, including: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency.
Key highlights of the “Doing Business” report:
• Mexico continues improving its ranking for the fourth consecutive year, rising by five positions compared to last year’s report
• Mexico is ranked 48 under the overall “ease of doing business” category, far surpassing all the BRIC countries, namely Brazil (130), Russia (112), India (132), and China (91)
• Under the “starting a business” ranking, Mexico showed a significant improvement to 36 from 75 compared to last year. According to the Mexican Economy Ministry, this improvement is largely due to the elimination of the minimum capital required to start a business, which used to be approximately US$5,000 for a corporation and US$300 for a Limited Liability Company.
• Under the “paying taxes” area, Mexico showed an improvement by two positions compared to last year’s report, to 107. As indicated by the report, Mexico has reduced by 78% the average number of times that taxes are paid in a year, from 27x in 2007 to only 6x in 2012. During this same five-year period, the time spent in paying taxes per year has reduced from 549 hours to 337 hours, representing a 39 percent improvement on time and resources for businesses.
Mexico’s president, Enrique Peña Nieto proposed a sweeping overhaul of the banking sector Wednesday to make credit cheaper and more available, a move desperately needed in a country where bank loans represent less than 20 percent of GDP – one-tenth the level seen in the United States.
“The goal is for banks to loan more, and loan more cheaply,” said Peña Nieto, “because access to credit can change a person’s life, giving them access to durable consumer goods, their own property and a way out of the informal economy.”
The plan would encourage banks to compete and lend more, create incentives for mid-size companies to list shares on the stock market, and modify bankruptcy laws to make it easier for lenders to seize debtors’ assets.
Economists estimate that one-quarter to one-half of Mexicans work in the “informal” sector, the off-the-books bazaar of churro vendors, fruit stands and other forms of micro-commerce that rarely offers more than a subsistence living. Providing those entrepreneurs with affordable banking services and credit is viewed as a key step toward building a broader Mexican middle class.
The new measures would foster more competition in the banking sector and lift some of the tight controls placed on lending after the 1995 peso crisis, said Luis Videgaray, Mexico’s treasury secretary and one of the president’s closest advisers.
Lending as a percentage of gross domestic product is about 16 percent in Mexico, he said, while the average in Latin America is closer to 50 percent.
Mexico’s finances are on solid footing, Videgaray said, and banking services dedicated to development have become “too conservative.”
“The purpose of development banking should be to finance innovation, the creation of patents, infrastructure . . . it should be a bank that promotes equality between men and women,” he said, also highlighting plans to increase small-business lending for women in particular.
The government projects an economic expansion of 3.5 percent in 2013 and President Peña Nieto is promoting a series of economic reforms in areas such as energy and taxation, which he says will tack an extra two percentage points annually on to the country’s GDP growth in future years.
Riviera Maya’s great beaches, hotels and resorts and other important destinations in the country receive special attention from President Enrique Peña Nieto’s tourism plan. This new initiative aims to strength existing destinations and highlight the vast diversity in the country.
Riviera Maya is synonymous of luxury travel, whether for spa vacations, all-inclusive resorts, fine dining or world-class shopping.
This beautiful area is already recognized as a top family destination with its luxurious spas and exclusive getaways. From hosting Hollywood’s elite in every movie premiere along this year, to the Dallas Cowboys Cheerleaders for their swimsuit calendar shoot, Riviera Maya has long since been recognized as an optimal beach destination.
The luxury travel network Virtuoso ranked Mexico number two in the world in luxury destinations, second only to Italy. The Grand Velas Riviera Maya in Playa de Carmen was named Best Spa in the World by Virtuoso and also earned a SpaFinder Readers’ Choice Award. In its 2013 Luxe Report, Mexico was ranked among the top five family luxury destinations in the world.
Apart from maintaining great hotspots, the goals of sun and beach tourism also involve strengthening security at beaches as well as promoting lesser-known resorts. Last April, the Mexican government launched “Operation Spring Breakers 2013” to ensure safety for college students who descend upon sandy beaches. And for those who desire a more laid-back vacation, the tourism plan highlights quaint resort areas such as Tulum. Though removed from the popular destinations Cancun and Playa del Carmen, Tulum is both a luxury and cultural oasis for the bohemian-spirited.
Its geographic location is a privilege and a vast array of cultural, natural, and historical attractions, Riviera Maya is a dream destination for any tourist. President Peña Nieto has made significant strides towards a burgeoning tourism industry by recognizing this wealth as well as its potential for growth. His plan not only keeps tourists safe and happy, but also contributes to the Mexico’s economic and social prosperity.
The Riviera Maya is one of Mexico’s leading destinations, with ten of Mexico’s sixteen AAA Five Diamond properties located in that region.
Certainly the growth of this area brings new investment opportunities that are targeted by thousands of people around the world. For vacation, invest in a business or live in paradise, we can advise you.
This wonderful event recreates one of the most ancient traditions of the Mayan culture; the yearly pilgrimage of the Mayan oarsmen, who braved the ocean on their canoes and crossed to the island of Cozumel to worship the goddess Ixchel by taking offerings and in search of her divine message for the Mayan people.
Now, according to Mayan tradition, the time has come to visit, honor and ask favors from the goddess Ixchel at her Sanctuary in Cozumel Island. This is the 7th Sacred Mayan Journey and the first one of the new era.
It is the beginning of a new cycle of abundance represented by corn, sustenance of all humanity, and symbol of the dawning of civilized life and human wisdom.
From May 23 to 25th the Sacred Mayan Journey 2013 will take place for its seventh consecutive year with the participation of 334 oarsmen that will cross the Caribbean Sea
On the 7th Sacred Mayan Journey the oarsmen will embark at Xel-Há and arrive at Chankannaab, in Cozumel; the next day they’ll depart once again to end their journey in Xcaret, taking with them the message of the goddess Ixchel.
Locals and visitors can enjoy this incredible event every year at Xel-Há and Xcaret, majestic parks located in the shores of the Mexican Caribbean in Tulum and the Riviera Maya respectively and both very close to Playa del Carmen. These are places where the beauty of nature, cultural richness and the most representative traditions of Mexico blend perfectly.
Once there visitors can enjoy a snorkel paradise with fun activities and more than 30 attractions in Xel-Há; and at Xcaret experience an incredible display of folklore and music, with more than 300 artists in the “Xcaret Mexico Espectacular“ presentation; and more than 40 attractions, besides music, ceremonies declared as Intangible Cultural Heritage of Humanity, as well as exquisite buffet-style Mexican cuisine.
In this Sacred Mayan Journey, there will be 153 women and 181 men participating. Although most of the oarsmen are locals, there will also be oarsmen from several nationalities including Germany, Argentina, Canada, Colombia, Spain, United States, France, Holland, England, Puerto Rico, Venezuela, Thailand and Belize.
The Riviera Maya is once again the meeting place that preserves the vast Mexican culture and is in the eyes of the world.
President Enrique Peña Nieto has been pushing for economic change, which has encouraged many investors put cash in to Mexico. Now Mexico has become the new hotspot for investors seeking opportunities in Latin America.
Mexican companies have proven themselves to have a better profit profile than those within Brazil, with higher profitability and better margins.
A recent article quoted a research director at Frontier Strategy Group as saying, “Brazil became a lot less attractive in the last year and a half. Mexico has definitely come up as a priority.”
Compared to Mexico’s quickly growing economy, Brazil’s grew only 1 percent last year. Brazil has the largest economy within Latin America, but it has been fighting against high inflation, leaving investors worried that over a potentially low-growth environment.
Experts predict Mexico’s economy will expand approximately 4.5 percent this year. Key fiscal, financial and energy reforms are expected in Mexico this year, and this comprehensive reform process will only deliver higher growth capacity for Mexico.
Mexico, overshadowed by Brazil for years, has secured its place as the new favorite among investors looking to put cash into Latin America.
“A lot of funds are looking into Latin America as sort of a portfolio of opportunities. Brazil became a lot less attractive in the last year and a half,” said in an interview Clinton Carter, director of research at Frontier Strategy Group. “Mexico has definitely come up as a priority.”
Jens Nordvig, global head of currency strategy at Nomura Securities wrote in a recent note “The mood in Mexico is clearly constructive. A lot of faith is being put in the ongoing reform process under President Pena Nieto, including deregulation of key industries.”
“Mexico, on most industries—and we’ve done a fair amount of surveys on this—generally has higher margins and is more profitable than a lot of other emerging markets,” said Carter of Frontier Strategy Group.
Investors have been encouraged by signs that the new Mexican president will continue to push for economic change.
When people see happy old men and women is when they learn about the importance of health care. Many people in Mexico, especially in the Caribbean (Riviera Maya, Playa del Carmen) are now enjoying services that come with this health care provision. Many people are also admiring services that are now enjoyed by these individuals. This can be seen from the way people comment and tell their government to come up with a policy that will enable them to enjoy free universal health care (“Popular Insurance”) similar to that enjoyed by people in this region.
Today, Mexicans, Riviera Mayas and playa del Carmen are able to take their children to school and lead a better life since they are not spending huge amounts of money in paying for health care. They are also able to set up businesses and live comfortably courtesy of “Popular Insurance”. A Mexican hotel worker or even a field worker is now able to access high quality services of a dentist or doctor than many middle class workers in different parts of the world. Even those with a private health insurance in other parts of the world may not have access to better health care than individuals living in this region.
With this Popular Insurance program, many Mexicans have many opportunities of establishing better relationships with social workers, cardiologists, dentists and other health practitioners. This is because they are able to contact go for checkups whenever they experience unusual health conditions. Free universal health care has also facilitated establishment of personalized services in this region. This has made it possible for Mexican patients to exercise their independence at the levels that they desire. In addition, universal health care has made diversification of services offered to patients possible. This way, patients are now getting better services that suit their individual needs.
These services and other more in the area have improved the quality of life of the people. This makes this area one of the most attractive places to live.
For the past decade or so, Playa del Carmen has been the fastest growing city in Latin America. In calendar year 2002, it was the fastest growing city on the in the world. It is very well known in chic circles, welcoming the most cosmopolitan people from North and South America, Europe, and most recently, Asia, to its crystal clear waters and powder white sand beaches. But until today the price of the Real Estate has kept the dream of living there out of the reach of all those who are not millionaires.
Today’s announcement of a new project of 25– 3 bedroom homes, in a gated secure community, reserved just for American and Canadian buyers, and priced under $100,000 USD, has changed all that.
“What we are seeing is a chance to allow a buyer who is not wealthy realize their dream of having a place in one of the most exclusive zip codes in this hemisphere” says Chris Rauton, head of Sales& Marketing at American Realty (www.American-Development.com) for the project. “For the last number of years when someone only had $100,000 to spend they usually ended up in Tulum or Merida because the prices were lower. This is the equivalent of affordable high quality homes in Manhattan, you just don’t see it”.
It is not only the price that is catching fire. The project is over 10 years in the making, with high quality building practices aimed at the American and Canadian Market. Playa del Carmen has long been associated with environmentally friendliness and this project plays into that theme perfectly. The houses are have been built with energy saving building materials, are pre-equipped for high speed internet connections and even have options for solar power, not something typically found at this price point anywhere.
“For North Americans it’s really an easy transition”, explains Chris, “the plugs are the same so all your electronics work without a hitch, all the stores accept dollars or pesos, there is even a Costco and Sam’s Club for when you want a taste of home.”
Sam’s and Costco notwithstanding, Playa del Carmen has over better than 500 restaurants makes it a Foodie’s must visit, with so much competition keeping the prices reasonable. We think we will stick to those for our eating needs.
For more information on this project contact Chris at Chris@American-Development.com
High speed rail in Mexico is a key priority for the new President of Mexico. In a recent speech outlining a National Tourism Policy for Mexico, President Enrique Peña Nieto emphasized the need for improved infrastructure in tourist destinations.
As an example, Peña Nieto proposed the completion of a rail line across the Yucatán Peninsula linking the colonial city of Mérida to the beach resorts of the Mayan Riviera. The Mexican government plans to spend approximately 11 billion pesos on the project.
The Transpeninsular Train would feature air-conditioned cars carrying as many as 400 passengers and traveling at speeds up to 110 mph. The first stage of the railroad would run from the Yucatán capital of Mérida to Punto Venado on the Caribbean Coast, with links to the Mayan archaeological sites of Chichen Itza and Tulum.
The new focus on high speed rail in Mexico marks a change in transportation policy. With the exception of a few tourist trains, like the Tequila Express in the state of Jalisco and the Copper Canyon railway through the Sierra Madre, Mexico all but eliminated passenger rail service when it shut down the state-run Ferrocarriles Nacionales de México (National Railways of Mexico) in the 1990s.
According to Abelardo Marcondes, founder of Luxurylab, thanks to Mexico’s economic and political stability, this country is now in the no. 4 spot of international luxury goods market.
Marcondes also said the principal difference between Mexico and other countries is the economic and political stability that it has achieved, as well as the import agreements with other countries, much different than Brazil, where import duties are very high. He also confirmed the industry grew more than 10 percent in the past two years, with the upward trend likely to continue.
Some 7.2 million people, or 5.2 percent of Mexico’s population, have access to high-end goods, Luxurylab says, citing a study prepared by consulting firm KPMG.
The KPMG study found that the Asia-Pacific region, excluding Japan, posted 22 percent growth in the sector in 2011, followed by Latin America, with 12 percent, and Europe, with 6 percent, with spending in Europe likely continuing to decline in 2012 as the “crisis anxiety has increased,” the expert said.
According to a Boston Consulting Group the luxury market in Mexico and Latin America is growing about 15 percent annually due to the increased availability of luxury goods in Mexico, making it unnecessary for high-end consumers to go shopping abroad.
Sales of luxury goods totaled an estimated $12 billion in 2011, up 33 percent from the previous year.
Growth estimates for the sector, according to Luxurylab, hover around 7 percent globally, down from the 12 percent pace of the past few years, but the industry’s growth rate remains comfortably ahead of global economic production projections.
Current figures are hard to get, a problem that will be addressed at the trade fair, which is expected to draw high-level executives, luxury brand representatives and investors, among others, Marcondes said.
Mexican economy is becoming stronger. Opportunities to invest in a business or properties are growing. We can help you to know more about this.
In short time, this country has gone from a minor parts supplier to a major partner of several large aviation companies by its attractive offerings of lower-costs, a free-trade system, and skilled, motivated workers.
Mexico can thank the large amount of foreign direct investment they have received in recent years for solidifying their place in the highly competitive, fast-growing aerospace industry.
Important key of this development is the strong cooperation between governments, universities, and private sectors in promotion of the capabilities of the Mexican aerospace sector has incentivized foreign manufacturers to increase their operations, not only in manufacturing but also in establishing an engineering base.
Strategic program manager at Kaman Aerostructures, John Gardner, says “They make it easy for you to do business down here. They provide a ‘soft landing,’ to get a quick startup—a good startup. We got a lot of support up front and afterward.”
Other great benefits in Mexico for this industry are geographic location, open trade policies, political and economic stability as their main reason for moving manufacturing south of the border.
Such stability has been particularly attractive to companies fearful of their intellectual property security and swayed them away from such countries as China.
Mexico is growing in diferent kind of business, opportunities are appearing all over the country.