Comparison Mexico and Colombia

UE – C. Porzler-Adams
Oktober 2019
 Summary

• Mexico's population is two and a half times larger than Colombia

• Mexico's GDP is three and a half times higher than that of Colombia

• Mexico's unemployment rate is only about one third of that of Colombia

• Mexico's import and export volume is nearly ten times higher that of Colombia

• Mexico imports 46.6% of goods and services from USA, Colombia 26.3% from USA

• Mexico exports to the United States 76.5% goods and services, Colombia 29.2%

• Colombia has significantly more mobile subscriptions per 1,000 population than Mexico (1,268: 885)

• Mexico and Colombia have about the same number of Internet users per 1,000 inhabitants (about 630)

2
 Coface country risk assessment map 2018 (2nd Quarter)

Coface assess‘ the business

defaulting risk in
Mexico as „fairly high“
and in Colombia as „reasonable“

Source: https://www.coface.de/News-Publikationen-Events/Publikationen/COUNTRY-RISK-ASSESSMENT-MAP-2nd-QUARTER-2018
3
 Mexico – Facts (1/2)
▪ Mexico is a country located in North America with a North Pacific
Ocean, Gulf of Mexico, and Caribbean Sea coastline
▪ Neighboring countries include Belize, United States, and
Guatemala
▪ Mexico is crossed by two mountain ranges known as Sierra Madre
Oriental and Sierra Madre Occidental, which are the extension of
the Rocky Mountains from northern North America
▪ The government system is a federal republic; the chief of state
and head of government is the president
▪ Mexico has a free market economy in which the prices of goods
and services are determined in a free price system
▪ Mexico is a member of the Asia-Pacific Economic Cooperation
(APEC), the North American Free Trade Agreement (NAFTA),
and the Trans-Pacific Partnership (TPP)
Source: https://globaledge.msu.edu/countries/mexico
▪ Capital City: Mexico City
▪ Currency: Mexican peso (MXN)
▪ Languages: Spanish only 92.7%, Spanish and indigenous
languages 5.7%, indigenous only 0.8%, unspecified 0.8%
▪ Ethnic Groups: mestizo (Amerindian-Spanish) 62%,
predominantly Amerindian 21%, Amerindian 7%, other 10%
(mostly European)
▪ Religions: Roman Catholic 82.7%, Pentecostal 1.6%,
Jehovah's Witnesses 1.4%, other Evangelical Churches 5%,
other 1.9%, none 4.7%, unspecified 2.7%
▪ GDP per capita, PPP (current international $): $19,888
(2018); gtai: 9,807 US$ (2018)
▪ Population: 126,190,788 (2018)
(Gtai: 124,7 Mio in 2018)
▪ Ease of Doing Business Rank: 54 out of 190(2018)
4
 Mexico – Facts (2/2)

▪ GDP Annual Growth Rate: -0,8 %

▪ Unemployment Rate: 3,7 %
▪ Balance of Trade: 775 Mio. US$ (August 2019)
▪ Raw materials:
▪ agrarian : milk products, poultry, beef, tomatoes, fruits, coffee, cotton, beens, rice, soya, wheat, corn
▪ mineral: natural gas, zinc, lead, gold, copper, antimony, silver, oil
▪ GDP (Nominal value added in %) 2017: Mining/industry 24,8 %; Trade/Hotels/Restaurants 22,5 %; Transport/Logistics/
communication 8,4 %; construction 7,7 %; agriculture/foresty/fisheries 3,6%;
miscellaneous 32,9 %

▪ Road network (km, fixed) 2017: 164,493

▪ Rail network (km, all track widths) 2017: 26,891
▪ container ports 2019: 13
▪ Landlines 2017: 161 per 1,000 inhabitants
▪ Mobile phone connections 2017: 885 per 1,000 inhabitants
▪ Internet users 2017: 639 per 1,000 inhabitants

Source: https://globaledge.msu.edu/countries/mexico; gtai may 2019 5

 Colombia – Facts (1/2)
▪ Colombia is a country in northwestern South America that
borders the Pacific Ocean and the Caribbean Sea
▪ Neighboring countries include Brazil, Ecuador, Panama, Peru, and
Venezuela
▪ The geography of Colombia is diverse with flat lowlands and
the high Andes Mountains
▪ The government system is a republic in which the executive
branch dominates government structure
▪ The chief of state and head of government is the president
▪ Colombia has a pro-market economic system in which the prices
of goods and services are determined in a free price system
▪ Colombia is a member of the Andean Community (ANCOM)
Source: https://globaledge.msu.edu/countries/colombia
▪ Capital City: Bogota (-5 GMT)
▪ Currency: Colombian peso (COP)
▪ Languages: Spanish (official)
▪ Ethnic Groups: mestizo and white 84.2%, Afro-Colombian
(includes mulatto, Raizal, and Palenquero) 10.4%, Amerindian
3.4%, Romani <.01, unspecified 2.1% (2005 est.)
▪ Religions: Roman Catholic 79%, Protestant 14% (includes
Pentecostal 6%, mainline Protestant 2%, other 6%), other 2%,
unspecified 5% (2014 est.)
▪ GDP per capita, PPP (current international $)$: 14,999 (2018)
▪ Population, total: 49,648,685 (2018)
6
 Colombia – Facts (1/2)

▪ GDP Annual Growth Rate: 2.7 % (2018)

▪ Unemployment Rate: 9.7 % (2018, 2019)
▪ Balance of Trade: -7.1 billion US$ (2018)
▪ Raw materials:
▪ agrarian: Forest products, shrimp, vegetables, oilseeds, cocoa beans, sugar cane, corn, tobacco, rice, bananas, cut
flowers, coffee
▪ mineral: emeralds, copper, gold, nickel, iron ore, coal, natural gas, petroleum
▪ GDP (Nominal value added in %) 2017: agriculture / forestry / fishing 4.9; Trade / Restaurants / Hotels 1,2;
Transport / logistics / communication -0.1; Construction -0.7; Mining / Industry -1,5

▪ Road network (km, fixed) 2016: 206,500

▪ Rail network (km, all track widths) 2015: 2,141
▪ container ports 2019: 6
▪ Landlines 2017: 142 per 1,000 inhabitants
▪ Mobile phone connections 2017: 1,268 per 1,000 inhabitants
▪ Internet users 2017: 623 per 1,000 inhabitants

Source: https://globaledge.msu.edu/countries/colombia 7
 Comparison economic data of Mexico and Colombia (1/3)

Gross domestic product, Population Unemployment rate

current prices in Million 12 in percent
In billion US$ 140 125,9 127,1
131,5
123,5 124,7 128,2 129,4 130,5 10 9,7 9,7 9,5
9,4 9,3 9
2000 1570 120 9,1 9
1495,1
1424,5
1358,4 100 8
1500 1241,4 1297,8
1223,4
1158,2 80 52,8
52,3 6
1000 60 49,8 50,4 50,9 51,4 51,9
49,3
3,33 3,49 3,56 3,44
372,7 393,5 416 439,3 40 4 3,42 3,56 3,51 3,47
500 311,8 333,1 336,6 352,8
20
2
0 0
2017 2018 2019 2020 2021 2022 2023 2024 2017 2018 2019 2020 2021 2022 2023 2024 0
Mexico Colombia 2017 2018 2019 2020 2021 2022 2023 2024
Mexico Colombia Mexico Colombia

Source: IMF April 2019 8

 Comparison economic data of Mexico and Columbia (2/3)

Volume of imports of goods – Volume of exports of goods –

percent change percent change
8 10
6,77
6 6,15 5,85 4,41 4…
6,02 6,9 4,18 4,41
4,66 Data express that in Mexico,
6,67 4,51 4,15 4,5 5 3,84 4,67 the service share only has a
4 4,19 4,41 4,15
3,52 3,23 4,08 3,65 3,11
2 3,09 0,46 3,32
3,34 3,68 visible impact on imports and
0 -0,07
exports in the years 2017 and
0 2017 2018 2019 2020 2021 2022 2023 2024
-0,52
2017 2018 2019 2020 2021 2022 2023 2024 -2,69 2018 - and as will in Columbia
-2 -5
only in 2017
Mexico Colombia Mexico Colombia

Presumably, after 2018,

however, the data will no
longer be differentiated

Volume of imports of goods and Volume of exports of goods and

services – percent change services – percent change
8 10
6,2 6,77
6,19 6,9
6 5,85 4,41 4,46 4,5 5,75 4,18 4,67
3,94 4,15 4,41 4,66
4,15 5
4 4,51 4,19 4,41
3,5 4,08 2,51 3,31 3,34 3,65 3,68
3,23
2 2,97 3,11
0 -0,07
1,2
2017 2018 2019 2020 2021 2022 2023 2024
0 -2,69
2017 2018 2019 2020 2021 2022 2023 2024 -5

Mexico Colombia Mexico Colombia

Source: IMF April 2019 9

 Global competitiveness Index 2017-2018 (1/3)

Position 66th/137 Position 51st/137

Source: http://reports.weforum.org/global-competitiveness-index-2017-2018/countryeconomy-profiles 10
 Global competitiveness Index 2017-2018 (2/3)

• Hermes country category 4 (1 = lowest risk category, 7 = highest) • Hermes country category 3 (1 = lowest risk category, 7 = highest)
• Ease of Doing Business 2019: Rank 65 out of 190 countries • Ease of Doing Business 2019: Rank 54 out of 190 countries
• Global Competitiveness Index 4.0 2018: Rank 60 out of 140 countries • Global Competitiveness Index 4.0 2018: Rank 46 out of 140 countries
• Corruption Perceptions Index 2018: Rank 99 out of 180 countries • Corruption Perceptions Index 2018: Rank 138 out of 180 countries

Source: http://reports.weforum.org/global-competitiveness-index-2017-2018/countryeconomy-profiles; gtai may 2019 11

 Colombia – Ideal Export Platform

Colombia has access to 47 countries and more than 1.5 billion consumers through
its trade agreements

AELC
Canada
European Union
United States
Japan
Caricom* South Korea
Israel
Mexico
Cuba*
Guatemala El Salvador
Honduras Costa Rica
Panama Venezuela
Nicaragua*
Ecuador
Brazil
Peru
Bolivia
Paraguay
In force
Uruguay
In negotiation Chile
Argentina
Signed
Pacific Alliance

Source: Colombian Ministry of Commerce, Industry and Tourism. 2015

12
Mexico Trade economy

foreign trade 2016 % 2017 % 2018 %

(in billion US$)
Import 387.1 -2.1 420.4 8.6 464.3 10.4

Export 373.9 -1.7 409.5 9.5 450.5 10.0

saldo -13.2 -10.9 -13-7

Main import goods 2018 Electronic: 14.5; machinery 14.1; chemical goods 10.5; automobiles and additives 9.2; Electrical engineering 8.3;
(% of the whole import) petrochemistry 7.2; food 4.4; metalware 3.3; science of measuring and control engineering 2.8; iron and steel 2.7;
various 23.0

Main export goods 2018 automobiles and additives 25.6; Electronic: 15.5; machinery 9.9; Electrical engineering 9.7; food 5.9; oil 5.9;
(% of the whole export) science of measuring and control engineering 3.6; chemical goods 3.4; metalware 2.1; raw materials 2.0;
various 16.4

Main supplier countries

2018 (% of the whole import) USA 46.6 %; China 18.0 %; Japan 3.9 %; Germany 3.8 %; South Korea 3.6 %; Canada 2.3 %; Malaysia 2.0 %; others 19.8 %

Main target countries2018

USA 76.5 %; Canada 3.1 %; China 1.6 %; Germany 1.6 %; Brasil 1.0 %; Colombia 0.8 %; Japan 0.7 %; others 14.7 %
(% of the whole export)

WTO membership Since january 1, 1995

Free Trade Agreements* Nafta (USMCA signed, not yet ratified); CPTPP; 'principled agreement' with the EU in August 2018 on the trade
section of a modernized agreement of 2000; Free trade: 13 agreements with 52 states - the new free trade
agreements with the EU
Source: gtai may 2019; ; *For bilateral agreements see www.wto.org -> Trade Topics, Regional Trade Agreements, RTA Database, By country / territory
13
Colombia Trade economy

foreign trade 2016 % 2017 % 2018 %

(in billion US$)
Import 42.6 -17.0 44.0 2.6 48.9 11.3

Export 31.8 -11.8 37.9 19.2 42.8 10.4

saldo -11.0 -6.1 -7.1

Main import goods 2017 chemical goods 20.3; food 9.8; electronic: 9.7; machinery 9.7; petrochemistry 7.9; automobiles and additives 7.8;
(% of the whole import) textiles/garements 4.2; iron and steel 3.6; Electrical engineering 3.5; other vehicles 2.5; various 21.0

Main export goods 2017 Oil 29.0; coal 19.9; food 14.0; chemical goods 8.1; petrochemistry Electronic: 5.4; raw materials 5.0;
(% of the whole export) textiles/garements 1.9; automobiles and additives 1.4; natural oils, fats, waxes 1.3; iron and steel 1.3;
various 13.0

Main supplier countries

2017 (% of the whole import) USA 26.3 %; China 19.0 %; Mexico 7.5 %; Brasil 5.0 %; Germany 4.1 %; Japan 2.7 %; India 2.3 %; others 33.1 %

Main target countries2018 USA 29.2 %; Panama 6.8 %; China 5.3 %; Netherlands 4.1 %; Mexico 4.1 %; Ecuador 3.9 %; Turkey 3.7 %; others 42.9 %
(% of the whole export)

WTO membership Since April 30, 1995

Free Trade Agreements* with the EU, Peru and Ecuador (provisional application since 1 August 2013), EFTA, Ecuador, Venezuela and the
Mercosur, Andean Community
Source: gtai may 2019; *For bilateral agreements see www.wto.org -> Trade Topics, Regional Trade Agreements, RTA Database, By Country / territory
14
Pacific Alliance

MILA’s four nations represent 38% of Market CAP

GDP of
Market Cap MM US $ Annual Value %
Latin America and the Caribbean
MILA 897.047 2.41
MILA is the first cross border initiative Market Cap MM US $ MM US $
to integrate equities markets
Chile 209.857 209.857

Listed companies Colombia 103.770 103.770

- up to December 2015: 608
Peru 124.044 124.044
- October 2019: over 700
Mexico 351.687 351.687
Market capitalization:
Mexico US$ 897 billion in 2018/2019 Volumes
Current Month Last Month YTD 2017 % Variation
Colombia Month

Peru Chile $ 3.443.682.384 $ 3.618.023.850 $31.994.757.857 -4.82%

Colombia $ 1.041.551.921 $ 1.255.973.424 $12.804.476.642 -17.07%

Chile
Mexico $ 10.342.033.280 $ 11.806.278.493 $114.186.253.210 -12.40%

Peru $1.227.982.406 $ 1.498.061.793 $5.937.915.685 -14.69%

Total MILA $16.105.249.990 $18.178.337.560 $164.923.403.394 -11.40%

markets

Source: IMF – UNCTAD - MILA, 2016.; https://unctad.org/en/Pages/statistics.aspx; http://mercadomila.com/

15
Back-up

16
 Overview economic data of Mexico and Columbia (1/2)

Source: IMF April 2019 17

18
Coface sector risk assessment map 2018 (2nd Quarter)

19