Digitalization and Mexico’s GDP
McKinsey & Company highlights that achieving a higher level of digitalization could boost Mexico‘s GDP by 15 percent.
The same company ranks Mexico 55th in digital maturity among 151 countries.
At the same time, the U.S. Department of Commerce expects the U.S.-Mexico-Canada Agreement (USMCA) to increase opportunities for U.S. information and communications technology companies.
The T-MEC’s digital trade chapter contains the strongest commitments of any international agreement, providing a firm foundation for expanded trade and investment in innovative products and services.
According to the Department of Commerce, the top priority of President Andrés Manuel López Obrador’s administration is to provide universal connectivity through its Internet for All program, which aims to establish Internet in rural and underserved communities, particularly in public areas.
The program is led by CFE-Telecomunicaciones and Internet para Todos, a subsidiary of the Federal Electricity Commission (CFE), which was established in 2019.
Digitization
Internet For All employs wireless broadband, fiber optic lines, satellites and mixed solutions, which represent opportunities for U.S. companies.
Deployment of the project has been significantly delayed due to the Covid-19 pandemic and global supply chain issues.
The Office of National Digital Strategy (EDN), located in the Office of the President, is responsible for drafting and implementing the country’s digitization policies.
In August 2021 EDN published Mexico’s digital strategy for 2021-2024.
The document contemplates two objectives: the digitization of the public sector and the increase of broadband access, in addition to highlighting the country’s need to achieve technological sovereignty.
Increased connectivity has stimulated the growth of Mexico’s digital economy in recent years.
Covd-19 changed Mexico’s consumption habits and accelerated the country’s digitalization.
Data from the Mexican Association of Online Sales (AMVO) shows that retail e-commerce in Mexico registered a year-on-year growth of 23% in 2022, reaching a market value of 528 billion pesos.
Over the last few years, Mexico has positioned itself among the top five countries with the highest growth in e-commerce in the world.
