Mexico has a developing market and so is its economy. According to the World Bank, ranked 15th globally, the economy has been rising rapidly over the years, much credit to the PPP (purchasing power parity) which is 11th worldwide. Bordering on mostly free, the economy has been in this category for 20 years. The major industry of trades, both, import and export have been helping flourish the national revenue but inequality and large-scale corruption has dragged the country down. The shift to accommodate the trade treaty between the U.S, Canada and Mexico, as well as the anti-corruption policy brought forward by the president, caused an immense improvement in the economic lookout of Mexico but the arrival of the pandemic has thrown the country into frenzy.
Major industries in Mexico are mining, petroleum and food, all of which depend of trade to the United State of America. As of 2020, with global recession and sufferance of demand and supply of goods, the Mexican economy has been rattled. The initial lockdown killed the economy by 17.4%. With no trade, many businesses are either struggling or forced to shut down. Many of them are looking towards improvements and improvisations on a personal level because the relief response from the government sector has been not on par with the required relief measures in the country.
Despite the underwhelming response from the Mexican government, the GDP saw improvement in the latter part of 2020 when import demands form America shot sharply high for a short period and export flowed in surplus. The economy turned up by 1% and went back to its stable condition. To compensate for the downward spiral of the GDP, fiscal policies need to be set in place to build upon post pandemic. This will help the nation rise up again with a fail-safe mechanism in place.
The IT sector is one such industry that could benefit from the government’s attention. The IT sector in Mexico revolves around STEM (Science, Technology, Engineering and Math) where more than 110,000 graduates come out every ear. Many other industries within the country have risen to support the IT sector due to their own need for IT reliance but the gap in the market is making it difficult.
Conclusively, Mexican IT sector has an opportunity in the market waiting but not many have come forward to take it. Instead, European companies have shared immense interest in the country’s talent pool and are looking for corporate investment options to explore. All but a little nudge from the Mexican government is needed.