The Bajío Region: Engine of the Mexican Economy
Located in the center of the country, the states of Aguascalientes, Guanajuato, Querétaro, Jalisco and San Luis Potosí are among the most popular economic regions. The five states that make up the Bajío region together generate about 17.4% of the national GDP, with a total population of 20.6 million inhabitants. This makes the economy of this region one of the strongest in the country.
It has been mainly the manufacturing sector of the automotive and aerospace industries that have settled in this region in recent decades. In recent years, also increasingly the field of agribusiness, logistics, technology 4.0 and biomedicine. When it comes to supporting automakers, the cooperation of the private and public sector has created better investment opportunities in the region, especially for American, German and Japanese automakers. The new BMW and Daimler plants, which opened in 2019 and 2020, have also provided an additional influx of suppliers and service providers.
The aerospace industry is forecast to have strong growth potential in the coming years, which could attract further foreign direct investment. Especially in Querétaro, the aerospace industry has experienced strong development and demands high quality and technology levels in the industry. The Canadian company Bombardier has a strong presence in Querétaro and a specialized aviation university is also located here. Overall, Mexico is one of the most important suppliers to the U.S. aerospace sector. The favorable location, the free trade agreement with the U.S. and Canada, and the region’s skilled workforce make the Bajío region an attractive investment destination.
Companies in the IT sector have settled mainly in the state of Jalisco, which is located west of the Pacific Ocean. The region around the capital Guadalajara is also known as the Silicon Valley of Latin America, with more than 700 high-tech companies such as Oracle, HP, Motorola and IBM. Overall, Jalisco ranks 5th in total foreign investment. More than 50% of all foreign investment comes from the U.S. and Canada, and another 25% from Europe.
In the last decade, the economies of the Bajío have reached a new economic dimension, registering high growth rates far above the national average. The results build on years of work, infrastructure development, investment in state-of-the-art education and security to create an attractive model for industry and attract investment.
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