Mexico has become one of the most attractive production locations in the world in recent decades. With a young population of around 130 million people, the country became the central production site in the region after the signing of the North American Free Trade Agreement (NAFTA). After a tenfold increase in trade flows over the last 20 years, Mexico was the USA's largest trading partner for the first time in 2023. In addition, Mexico's location between two major oceans means that it is able to act as a trade bridge between Europe and Asia.
Trade flows between Germany and Mexico have also developed very positively over the past two decades. In 2024, Germany exported goods and services worth USD 19.8 billion to Mexico, while goods and services worth around USD 7.1 billion were imported. This positions Germany as Mexico’s most important trading partner in Europe and Mexico as Germany’s most important trading partner in Latin America. Germany also regularly ranks among the top five foreign investors in Mexico.
A high number of free trade agreements, a stable public financing situation, a low wage level and increasingly good access to highly qualified specialists form the basis for Mexico's importance as an investment location. The implementation of long-awaited structural reforms in the energy and infrastructure sector also triggered large-scale private investments from 2013, particularly in renewable energies. After a period of stagnation between 2018 and 2024, there is now hope for a revival of the sector under the new President Claudia Sheinbaum. For example, the share of renewable energies is expected to increase significantly by 2030 and the participation of private companies in the sector is being actively encouraged again by new legislation.
Mexico has been an operating location for hundreds of German and European countries for decades. Thanks to the favourable conditions, Mexico remains a country in which many sectors are able to unlock potential – including those in which German companies have a strong presence.
We support German and European investors and exporters in implementing their projects in this dynamic market with tailor-made financing products.
KfW IPEX-Bank's representative office in Mexico-City does not conduct any bank business of its own. Instead, its sole function is to support the bank's headquarters in Frankfurt.
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