The Yucatan region is seeing a rise in investment from both inside and outside of Mexico, and that is of course good news for businesses and people already in our beautiful part of the country. Some of this is down to a general rise in investment in Mexico, but also some of the unique benefits Yucatan can offer to businesses from a location and strategy perspective.
Good Performance from the Peso Enticing Foreign Investment
When Trump came into power in the US, there were concerns worldwide that the NAFTA would be affected and trade with Mexico would deteriorate. Actually, the peso has had exceptionally good performance of late, thanks in part to Trump showing no signs of dissolving the NAFTA, and also to a newly discovered oil supply off of our coast. One only has to look at the performance of the peso against the dollar on currency sites like forex.com to see that confidence in the peso has been high lately, and Mexico has actually been one of the best performing emerging economies in the world.
This has seen foreign investors really want to get involved with Mexico as a whole, and Yucatan has several features that prove very appealing to them:
Yucatan’s Strong Strategic Position
One of the main reasons people are choosing Yucatan over other promising regions of Mexico is its location. We are effectively closer to Europe than anywhere else in Mexico, and with the highly accessible Port of Progreso making it easy for trade on the import and export market with Europe and Asia as well as the USA and South America, there is a good strategic edge for businesses looking to start up in, or expand into, Mexico by looking at Merida and the surrounding areas.
Yucatan also offers good resources for businesses interested in tourism due to the natural beauty of the area, and is the safest state in Mexico, meaning it is an appealing place to relocate to or set up a company.
Good State Support for Businesses
Another strong point Yucatan has, and which has been helping boost investment in the region, is the amount of assistance offered to businesses by the state. There are a number of services offered by the Ministry of Economic Development in Yucatan that can help both foreign and domestic business people set up here, promote themselves, network and gain access to advisory services and support. We have become a business friendly state, and this has been reflected in the influx of new businesses and investors that have been seen in recent times.
The peso is expected to continue to appeal to investors and put Mexico as a whole in a strong position when it comes to gaining investors from other countries who are looking for opportunities in emerging markets. Couple that with all of the positives the Yucatan region can offer both as a strategic location and as a home, and we can hopefully expect to see the trend of investment here continue.
By Murray LeClair for TYT
This article is published on behalf of IG Markets.