🇲🇽 Mexico

Mexico is Latin America's second-largest economy ($1.8 trillion GDP) with 130 million people, and it's having a moment. Nearshoring — companies moving supply chains closer to the US — has made Mexico the US's largest trade partner, surpassing China in 2023. The country is the world's largest producer of avocados, beer (for export), and silver. Mexico's manufacturing sector, particularly automotive (it produces about 4 million vehicles annually), electronics, and aerospace, is deeply integrated with the US through the USMCA trade agreement. Mexico City, with 22 million in the metro area, is one of the world's great megacities — its food scene rivals any on earth. The country has 35 UNESCO World Heritage Sites, more than any other country in the Americas.

Manufacturing exports (automotive, electronics, machinery) account for about 80% of total exports, with the US absorbing roughly 80% of everything Mexico sells. Remittances from Mexicans in the US hit a record $63 billion in 2023 — more than oil revenue. Tourism generates about $30 billion annually. The peso has been one of the strongest emerging market currencies. Oil production from Pemex has been declining for two decades, from 3.4 million barrels per day to about 1.6 million. The informal economy employs about 55% of workers.

Mexico City is built on a drained lakebed and is sinking at a rate of about 50 cm per year — some areas have sunk 10 meters in the last century. The country's Copper Canyon system in Chihuahua is larger and deeper than the Grand Canyon. Mexico has the world's largest pyramid by volume — the Great Pyramid of Cholula, mostly buried under a hill with a church on top, has a base four times larger than Giza's Great Pyramid.

Mexico's nearshoring moment is real and could be transformative — the country is perfectly positioned to benefit from US-China decoupling. Security remains the critical variable: cartel violence and rule-of-law challenges are the main barriers to reaching full potential.