“Mexico in progress: real economy, real works”

• A new economic chapter is being written in Mexico: the country is growing little in terms of GDP, but it is receiving a strategic wavel of investments for the so-called nearshoring, the relocation of companies that seek to produce closer to the United States. Although international organizations predict a growth of around 0.5 to 1% in 2025, they highlight the country’s ability to withstand a complicated global environment.• The federal government promotes the “Mexico Plan”, a national strategy to make the most of this nearshoring with tax incentives, fewer procedures and projects designed for small and medium-sized companies. The decree, published in January 2025, allows the immediate deduction of investments in new fixed assets until 2030, which seeks to accelerate the arrival of productive capital and technology.• In real life, this is already reflected in exports: business organizations project that Mexican sales abroad may grow by around 6% in 2025, driven precisely by companies that are moving or expanding operations in the country. The most dynamic poles continue to be the northern states, such as Nuevo León, Baja California and Chihuahua, where automotive and electronic clusters are concentrated that lead the demand for infrastructure and energy.• In infrastructure, Mexico is betting heavily on the rebirth of the passenger and freight train. Projects such as the Mayan Train and the Interoceanic Corridor of the Isthmus of Tehuantepec are now integrated with new railway plans that add up to more than 3,000 kilometers of tracks in different phases. The goal is clear: to move more cargo by train over long distances and connect historically forgotten regions with large national and international markets.• In the southeast, the Mayan Train advances with almost finished engineering studies and with the implementation of services such as the Campeche light rail and a loading strategy that is coordinated with the Yucatan industry. At the same time, the Interoceanic Corridor already operates key sections and adds new stations and development poles in places such as Tapachula, Arriaga and several points of the Isthmus, seeking to detonate employment and industrial parks near the ports.• In the center and north of the country, the new government started railway works that will connect Felipe Ángeles International Airport with Pachuca, as well as the Mexico-Querétaro section of the Mexico-Nogales train, which aims to move millions of passengers a year. The Querétaro-Irapuato and Saltillo-Nuevo Laredo sections are also being prepared, key to connecting the Bajío and the northeast with the border and export supply chains.• All of these projects are combined with special incentives for export industries and border regions, including fuel tax reductions and extended tax benefits for companies that settle in strategic sectors. The underlying bet is that, although growth today is modest, the new infrastructure and nearshoring will consolidate Mexico as a first-level logistics and manufacturing node in North America in the next decade.Thanks for reading Totally Exposed! This post is public so feel free to share it.Thanks for reading Totally Exposed! Subscribe for free to receive new posts and support my work. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit totallyexposedbynavarro.substack.com