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The Mexican economy is dominated by the service sector, which contributed approximately 63% to the total GDP in 2015. The major contributors of the service sector are financial institutions and real estate, public administration, and social activities. The GDP growth rate of Mexico was hampered by the global financial crisis and r

ecession in 2009, and it declined to negative 4.7%; however, the Mexican economy had managed to recover with a growth rate of 5.1% in 2010. The growth was driven by a dynamic external demand and domestic demand. The country’s strategic location and supportive governmental policies strengthen the industrial activities.
 
 Lucintel, a leading global management consulting and market research firm, has analysed the political, economic, social, technological, legal, and environmental factors of Mexico, and has come up with a comprehensive research report “PESTLE Analysis of Mexico 2016.” This report provides an analysis of the Mexican economy from historical, current, and future perspectives. SWOT analysis, forecast and scenario analysis, and risk analysis of Mexico has also been included in this report. The report also includes forecast of the economic growth through 2021. 
 
The report highlights various drivers and challenges, which have an influence on the investment decisions in the economy. The Mexican economy has a stable political system under President Enrique Pena Nieto. The country is considered to be one of the advanced emerging economies in the world. Mexico has rich oil and natural gas reserves, and the country is focusing on preserving them. Thus, the economy successfully runs on a well-diversified base by increasing investments in the service sector. The country, however, is facing challenges such as negative current account balance, fiscal deficit, and trade deficit. 
 
This unique report from Lucintel will provide you with valuable information, insights, and tools needed to identify new growth opportunities and operate your business successfully in this market. This report will save hundreds of hours of your own personal research time and will significantly benefit you in expanding your business in this market. In today’s stringent economy, you need every advantage that you can find.
To make business, investment, and strategic decisions, you need timely, useful information. This market report fulfills this core need and is an indispensable reference guide for multinational materials suppliers, product manufacturers, investors, executives, distributors, and many more that operate in this market. 
 
Some of the features of this report:
  • Trend and forecast for key macroeconomic variables that are useful to make major investment decision
  • Analysis on economic activity, investment environment, and trade structure of the country
  • Major industries in Mexico and its contribution to GDP
  • Trends in savings, investments, and consumptions 
  • Analysis of Political, Economic, Social, Technological, Legal, and Environmental scenarios as well as their impact on different industries
  • Analysis on geographical importance and social structure such as labor quality
  • Strength, Weakness, Opportunity, and Threat (SWOT) analysis of  Mexico
 
Table of Contents
1. Executive Summary
 
2. Mexico’s Political Analysis
2.1: Structure and Stability of Government
2.2: Government Changes and Policy Stability
2.2.1: Policy Agenda – Reforms and Future Plans
 
3. Mexico’s Economic Analysis
3.2: Sectoral Contribution to GDP and GDP Growth Rate
3.3: Pricing Trends- Inflation and Interest Rates
3.4: Major Economic Growth Driver – Consumption, Saving, and Investment Trends
3.5: International Trade and Its Contribution to GDP
3.6: Foreign Direct Investment by Industry
 
4. Mexico’s Economic and Business Risk Analysis
4.1: Risk in the Financial Sector
4.1.1: Risk in Current Account Balance (CAB)
          Terms of Trade of Mexico
4.1.2: Risk in Balance of Payment (BOP)
4.2: Risks in Foreign Exchange Reserves and the Exchange Rate
4.2.1: Risk in Fiscal Balance
4.2.2: External Debt and Default Risk
4.3: Credit Rating of Countries – Credibility in the Debt Market
 
5. Mexico’s Social Analysis
5.1: Social and Demographic Analysis
5.2: Labor Market – Quality and Availability
5.3: Social Development Index
 
6. Mexico’s R&D and Technological Factors
6.1: R&D Expenditure in Mexico
6.2: Impact of Technology in Industry
6.3: Technology Policy
 
7. Mexico’s Legal Analysis
7.1: Company Law
7.2: Labor Law
7.3: Tax Law
7.4: Economic Policies – A Recent Development
7.5: Doing Business in Mexico 2015 – Process to Establish Business
 
8. Mexico’s Environmental Analysis
8.1: Environment Policy
 
9. SWOT Analysis – Search of Potential Opportunities in Mexico
 
 
 
List of Figures
Chapter 3. Mexico’s Economic Analysis
Figure 3.1: Economic Scenarios of Major Countries, 2014
Figure 3.2: Trend of the Real GDP Growth Rate
Figure 3.3: Scenario Analysis of GDP Forecast
Figure 3.4: Trend of the Per Capita Income
Figure 3.5: GDP Sectoral Contribution
Figure 3.6: Share of Different Sectors to GDP, 2014
Figure 3.7: Annual Trend of Inflation and Interest Rate
Figure 3.8: Quarterly Interest Rate of Mexico
Figure 3.9: Quarterly Inflation Rate of Mexico
Figure 3.10: Trend of Savings and Investments as Percentage of GDP
Figure 3.11: Trends of Consumption Expenditure as Percentage of GDP
Figure 3.12: Trends of International Trade Structure
Figure 3.13: Mexican Exports by Commodity in 2009
Figure 3.14: Mexican Exports by Commodity in 2014
Figure 3.15: Mexican Imports by Commodity in 2009
Figure 3.16: Mexican Imports by Commodity in 2014
Figure 3.17: Mexican Exports by Country in 2009
Figure 3.18: Mexican Exports by Country in 2014
Figure 3.19: Mexican Imports by Country in 2009
Figure 3.20: Mexican Imports by Country in 2014
Figure 3.21: Trends of Exports and Imports as Percentage of GDP
Figure 3.22: Foreign Direct Investment by Industry
 
Chapter 4. Mexico’s Economic and Business Risk
Figure 4.1: Trend of Current Account Balance and its percentage to GDP
Figure 4.2: Terms of Trade for Mexico
Figure 4.3: Trend of Balance of Payment
Figure 4.4: Trend of Foreign Exchange Reserve and Exchange Rate
Figure 4.5: Trend of Revenue and Expenditure as Percentage of GDP
Figure 4.6: Trend of Fiscal Deficit as Percentage of GDP
Figure 4.7: Trend of Gross Government Debt 
Figure 4.8: Trend of Gross Government Debt as Percentage of GDP
 
Chapter 5. Mexico’s Social Analysis
Figure 5.1: Political Map of Mexico
Figure 5.2: Trend of Population in Mexico
Figure 5.3: Population Age Structure
Figure 5.4: Trend of Unemployment Rate in Mexico
 
 
Chapter 6. Mexico’s R&D and Technological Factors
Figure 6.1: Trends of R&D Expenditure in Mexico
 
 
 
 
List of Tables
Chapter 1. Executive Summary
Table 1.1: Factors Affecting Business in Mexico
 
Chapter 2. Mexico’s Political Analysis
Table 2.1: Political Factors and Their Impact on Business
 
Chapter 3. Mexico’s Economic Analysis
Table 3.1: Factors Affecting Industry Growth
Table 3.2: FDI limits by Industry
Table 3.3: Economic Factors and Their Impact on Business
 
Chapter 4. Mexico’s Economic and Business Risk
Table 4.1: Credit Rating of Countries by Moody’s, Fitch, and S&P
Table 4.2: Economic Risk Factors and Their Impact on Business
 
Chapter 5. Mexico’s Social Analysis
Table 5.1: Population Age Structure of Mexico
Table 5.2: Corruption, GINI, Homicide and Human Development Index
Table 5.3: Social Factors and Their Impact on Business
 
Chapter 6. Mexico’s R&D and Technological Factors
Table 6.1: Technological Factor and Their Impact on Business
 
Chapter 7. Mexico’s Legal Analysis
Table 7.1: Indicators for Starting Business
Table 7.2: Ranking for Ease of Doing Business
Table 7.3: Legal Factors and Their Impact on Business
 
Chapter 8. Mexico’s Environmental Analysis
Table 8.1: Environmental Factors and Their Impact on Business
 
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35 valuable figures/charts and 15 tables are provided in this roughly 78-page report.
Lucintel has been in the business of market research and management consulting since 2000 and has published over 1000 market intelligence reports in various markets / applications and served over 1,000 clients worldwide. This study is a culmination of four months of full-time effort performed by Lucintel's analyst team. The analysts used the following sources for the creation and completion of this valuable report:
  • In-depth interviews of the major players in this market
  • Detailed secondary research from competitors’ financial statements and published data 
  • Extensive searches of published works, market, and database information pertaining to industry news, company press releases, and customer intentions
  • A compilation of the experiences, judgments, and insights of Lucintel’s professionals, who have analyzed and tracked this market over the years.
Extensive research and interviews are conducted across the supply chain of this market to estimate market share, market size, trends, drivers, challenges, and forecasts. Below is a brief summary of the primary interviews that were conducted by job function for this report.
 
Thus, Lucintel compiles vast amounts of data from numerous sources, validates the integrity of that data, and performs a comprehensive analysis. Lucintel then organizes the data, its findings, and insights into a concise report designed to support the strategic decision-making process. The figure below is a graphical representation of Lucintel’s research process. 
 

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