Thought for London - February 2008

London’s economic growth offers great potential for Mexican investment

Earlier this month I visited Mexico to promote the investment opportunities that London can offer Mexican companies. My message was simple - Think Global, Think London.

My visit, Think London’s first to Mexico, followed on from the Lord Mayor’s successful trip last year. This visit organised in collaboration with UK Trade & Investment focused on promoting our world leading financial and business services, technology and creative industries sectors and the opportunities surrounding the 2012 Olympic Games together with London’s phenomenal growth over the next five years.

The Mexican economy, the 13th largest in the world is the most open in Latin America. It is the largest market in Latin America in terms of foreign direct investment outflows and, according to the Economist Intelligence Unit, is forecast to increase from £3.4 billion in 2008 and to £4.25 billion in 2011.

Although to date, Mexican investment has been predominantly focused on countries in Latin and North America, an increasing number are looking to Europe as part of their globalisation strategy.

The largest ever overseas investment from Mexico was to the UK - CEMEX, the cement manufacturer, buying RMC in 2004 as a base to expand their European operations.

Representatives of Mexican businesses I spoke to were very interested in the wealth of opportunities surrounding the 2012 Olympic Games, the overall growth in the London economy and the benefits of raising capital on the London Stock Exchange.

The Games will act as a major catalyst for redevelopment in London and will add around £4 billion worth of investment to the London economy up to 2012. However, this growth represents only 10% of the growth forecast of £40 billion in London by 2012.

During the vist I announced that Think London together with Avanta, the serviced office company, will extend our Touchdown London business incubator service to Mexican companies looking to set up in London. We anticipate that Mexican businesses will value Touchdown London in the same way that Chinese and Indian companies using the service have done.

As we edge ever closer to the 2012 Olympic Games, London is the place to be for companies looking to expand their operations into Europe and beyond and Think London are here to help you realise your business potential.

Michael Charlton Chief Executive, Think London