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FROM THE CHAIRMAN
The Right Climate for Prosperity
What Mexico’s Strong Luxury
Goods Market Means
to Los Cabos
S urrounded by the for luxury goods over the next five
extraordinary beauty that years. Among emerging markets,
is Los Cabos, it is easy to Mexico’s position is unique given its
forget the rest of the world shared border with the USA and its
“out there.” Rest assured - the world of trade agreements with NAFTA and
luxury goods has not forgotten Mexico, the Trans-Pacific Partnership. That
and with good reason. Over the next said, there are other positive economic
five years Mexico is expected to be one indicators that suggest real change
of the most promising growth markets on socio-political fronts that lend
for the global luxury goods industry. additional support to the optimistic
Aside from the profit to be gained by forecast.
investing in this sector, or perhaps The first and most important of these
the joy of finding your favorite luxury indicators is Mexico’s growing middle
brands here in Los Cabos, what is class, which according to the national
the significance of this trend to our statistics office makes up 39% of the
community? population. The buying power of this
demographic is driving real GDP,
To fully appreciate the importance which is expected to grow by 2.6% in
of luxury goods as an economic 2016, up from 2.4% in 2015. The real
indicator, you need to look at the value of private final consumption
statistics on which Mexico’s market rose by 3.9% in 2015 and is expected to
strength is being measured. A recent gain another 3.3% by the end of 2016.
article published by Luxury Society Not only does a growing middle class
(Is Mexico the Next Luxury Gold provide a strong and stable source of
Mine? by Fflur Roberts, June 2016) demand for luxury goods, it creates
covers Euromonitor International’s an educated workforce that fosters
exploration of the forces driving the next generation of entrepreneurs.
Mexico’s strong economic These entrepreneurs provide support
performance. for the economic and political
institutions that promote prosperity
The article references the declining and well-being. All of this contributes
luxury goods economies in Russia, to greater security over the long term.
Brazil and China, noting that Mexico
and India are the two BRIC countries
showing promising growth potential
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