Mexico worsened in a ranking about the complexities to operate in investing, as it passed from position four to three from 79 nations analyzed by TMF Group.
According to the 2025 edition of the Global Business Complexity Index of the firm, Mexico was also located as the most complex country in Latin America.
“Mexico is consolidated as well as one of the three most demanding economies in regulatory, fiscal and administrative matters. This responds to an environment in transformation, of reforms aimed at improving working and social conditions, but that impose new compliance challenges for companies,” said the company of administrative and regulatory compliance in a statement.
TMF Group explained that regulatory complexity not only increases companies operations, but also represents a challenge for businesses that seek to develop in new markets.
He pointed out that while some demands respond to legitimate social or environmental goals, in many cases they imply challenges.
One of the examples that gave about Mexico is the standard that requires minimal conditions for workers in factories, such as that they have adequate seats.
He explained that these types of regulations reflect a growing approach to well -being for the employee, but at the same time require the implementation of operational and administrative adjustments that significantly raise the complexity of organizations management.
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Another example is that the law that forces to formalize contracts for those who work from home more than 50% of the time has promoted hybrid schemes, and although this has given positive results, it has also generated operational, organizational and economic charges.
TMF Group said that “complexity does not necessarily represent an insurmountable obstacle,” but warns that “what really affects strategic decision making is not complexity, but uncertainty.”
Volatility in commercial policies and tariff changes are some of the factors that hinder long -term planning.
Even so, the report acknowledged that Mexico has a key role in the global reconfiguration of supply chains: “although its regulatory environment is complex, Mexico still has a key role as a destination for Nearshoring, thanks to its network of commercial treaties.”
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One of the main challenges identified is the lack of qualified workers. In this regard, Dunia Solomon, general director of TMF Group in Mexico, said:
“Mexico is much more than a destination for Nearshoring. While the country is well positioned, there are areas and specialties that require development and training. Therefore, it is important that Mexico receives foreign investment that contributes to form and develop the skills of the Mexican workforce,”
The 2025 edition of the Global Business Complexity Index analyzed the 79 countries responsible for 94% of global GDP, and the Cayman Islands repeated for the second year as the least complex jurisdiction.
“This stability is attributed to the maturity of its financial systems, the stability of the political environment and the high levels of digitalization,” he said about the British overseas territory.
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