{"id":31132,"date":"2020-02-06T07:42:46","date_gmt":"2020-02-06T12:42:46","guid":{"rendered":"https:\/\/www.escapeartist.com\/?p=31132"},"modified":"2020-07-22T01:37:21","modified_gmt":"2020-07-22T05:37:21","slug":"a-financial-case-for-moving-to-mexico","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/a-financial-case-for-moving-to-mexico\/","title":{"rendered":"A Financial Case for Moving to Mexico"},"content":{"rendered":"

Mexico has traditionally been one of the most promising economies across Latin America. Things have looked better over the past few years ever since President Obrador came to office and resolved many of the problems the country faced. Let’s discuss a financial case for moving to Mexico.\u00a0<\/span><\/p>\n

Even though economic growth has been slow, I think this can be put down to the existing inefficiencies of the government which will hopefully be fixed soon. There\u2019s still plenty of investor confidence in Mexico\u2019s economic futures considering the country <\/span>generated $10 billion<\/span><\/a> in FDI in the past year. This confidence in the economic future of Mexico is what\u2019s compelled me to write about the financial advantages of moving to the country.\u00a0<\/span><\/p>\n

For anyone who brings their money from their home country, moving to a lesser developed nation is always beneficial. With the lower cost of living, lower inflation rates and the differences between exchange rates, you\u2019re always at a financial advantage. Mexico offers more financial potentials than any other country because it meets the emerging economy criteria.<\/span><\/p>\n

 <\/p>\n

Mexico As An Emerging Economy<\/b><\/h2>\n

The concept of an emerging economy is commonly applied to many countries in Latin America. Brazil, Argentina and Mexico are the most commonly referred to as emerging economies, out of which <\/span>Mexico stands out<\/span><\/a> as one of the most promising. The country has a GDP per capita of just beneath $12000, has an HDI<\/a> rating of 0.767 and it\u2019s making pretty great headway in terms of reducing poverty.<\/span><\/p>\n

These factors play a substantial role in the social and political stability of any country\u2014Mexico is way past the point of being a risky nation. The administration has recently introduced policies to help improve the growth of entrepreneurship and to attract greater numbers of investors from around the world and these inflows are bound to change the tide very soon.\u00a0<\/span><\/p>\n

As a contrarian investor myself, I believe that Mexico\u2019s bumpy economic development is just the starting point of what will be a very prosperous road to financial growth. Anyone with a little financial acumen can tell that there is much potential that Mexico has to offer.<\/span><\/p>\n

 <\/p>\n

Notable Sectors To Invest In<\/b><\/h2>\n

One of the reasons for Mexico\u2019s rise as an emerging nation is a <\/span>thriving manufacturing sector<\/span><\/a>. Most of the FDI<\/a> comes in from Asia, Europe and the United States where people seek out cheap and a highly skilled labor force. It\u2019s not often when a country offers high-quality labour in return for lower investments. It also cuts down the logistics costs because Mexico is literally the connecting point for North America. On either side of Mexico, you\u2019ll find some very robust consumer economies.<\/span><\/p>\n

Where South America has one of the highest population volumes in the world, North America has one of the richest countries in the world, the USA. Mexico is one of the largest trade partners with the United States and investing in the manufacturing sector will ideally place you to trade with American clients who pay hefty sums for Mexican manufactured goods.\u00a0<\/span><\/p>\n

 <\/p>\n

A Growing Tech Industry<\/b><\/h2>\n

I\u2019ve heard many people say that Silicon Valley has moved outside of the US and towards Latin America. It makes sense that this would happen because mass skill specialization often increases cost burdens within the economy and the background inflationary pressures can force industries to move out of a local market.<\/span><\/p>\n

This also happened in the United States, where producers can\u2019t afford local talent because of wage-related cost burdens. Many producers now rely on outsourcing to Mexico, which doesn\u2019t have huge time-zone burdens, doesn\u2019t lack skilled developers and because of minimal language barriers. Mexican technology firms actually <\/span>constitute 55% of all Mexican exports<\/span><\/a> and this share is expected to rise in the future. Since 2014, the sector has attracted nearly $120 million in investments and returns of as high as $21 billion are expected every year. Assuming that this momentum continues, we\u2019re looking at major economic growth in Mexico.<\/span><\/p>\n

 <\/p>\n

Low Inflation And Cost Of Living<\/b><\/h2>\n

Since Mexico has a pretty stable inflation rate, it keeps the Peso more or less stable compared to other economies. Considering that much of its revenue comes out of exports, the government goes out of its way to make sure that the currency remains cheap compared to the USD or the GBP. Ultimately, this reduces the cost of living in Mexico and many people agree that their quality of living significantly improves when they move there.<\/span><\/p>\n

If you\u2019re bringing in currency to Mexico, you\u2019ll enjoy greater purchasing power because most currencies in the world are valued higher than Mexico\u2019s. Whether you\u2019re looking to retire or set up a business in Mexico, the greater purchasing power of the currency brought in will offer a huge competitive advantage compared to your peers.\u00a0<\/span><\/p>\n

 <\/p>\n

Investment Incentives In Mexico<\/b><\/h2>\n

Mexico is looking to grow its economy through greater foreign investments. To help generate greater investments from around the world, the state has introduced multiple policies to make it easier to set-up and run a business in Mexico. <\/span>These incentives include<\/span><\/a>:<\/span><\/p>\n