The state Queretaro positioned as the most attractive market of business to invest in 2019, explained the firm KPMG.
On their report Perspectives of High Direction in Mexico 2019, KPMG detailed that more than half of consulted companies (54 %) are planning to expand their operations in any State of the Mexican Republic in the upcoming three years and, with 33 %, Queretaro was placed as the new favorite destination of respondents.
Followed by Guanajuato, with 28 %; Nuevo Leon and Jalisco, with 27 %; and Estado de Mexico, with 26 percent.
“Regarding business strategy, respondents are questioned about which are the main investment destinations. Nationally Queretaro is the most important point of investment for national industries, followed by Guanajuato, Nuevo Leon and Jalisco,” said Luis Alfredo Pena, leading audit partner for the Bajio region of KPMG in Mexico.
Meanwhile, 29 % of High Direction said that they are planning to expand their operations in other countries: the United States (40 %,) Colombia (25 %,) Peru (15 %,) Brazil (14 %) and Spain (13 %.)
Celin Zorrilla, leading partner of Industries and Market of KPMG in Mexico, underlined that for the first time, businessmen considered a European country among the first five investment destinations, which could become a trend.
“The renegotiation of the Agreement among Mexico, the United States and Canada (USMCA) opened the eyes of the business sector to diversify their investment portfolio of other countries besides the United States,” he referred.
He held that the objective of the Perspectives of High Direction in Mexico 2019 is to collaborate with the business community to identify and highlight challenges and priorities.
“933 directors participated in this report, councilors and business executives nationwide,” he noted.
In addition, he explained that the study addressed four chapters: business environment, business strategy, innovation and transformation, and finally risk management and regulatory fulfillment.
“High direction had a similar trend to previous fiscal years, the trend is to have a moderate growth of Mexico’s economy and they expect a moderate growth inside their companies, this is, a growth lower than two digits,” he underlined.
Regarding the survey fulfilled to Queretaro entrepreneurs – which represent 5 % of the total interviewed – 58 % of those planning to expand their operations in any State of the country choose Guanajuato as first destination ( 47 % of answers,) followed by Mexico City (37 %,) Estado de Mexico (32 %,) Queretaro (26 %,) Nuevo Leon (21 %) and Jalisco (21 %.)
Luis Alfredo Pena, leading partner of Audit for the Bajio region of KPMG in Mexico, said that the survey said that the best place to invest for Queretaro investors is Guanajuato.
“Due to the closeness Guanajuato has and the extension of the State, Queretaro businessmen are seeking to invest in Guanajuato,” he said.
Meanwhile, 46 % of those interviewed in Queretaro expects country’s economy improves in 2019 and 54 % revealed that their company’s profitability increased in the last three years.
Among the actions they will apply on their organization to achieve higher competitiveness, 56 % will be centered on their customer; 56 % will develop new products or business lines; 53 % will focus and promote innovation; 41 % will develop and retain talent; and 41 will improve processes and performance.