Mexico – one of the most competitive countries for international investments, all due to its stability in politics and strong internal market. However, the COVID-19 pandemic has hit this stable country hard. The President of Mexico, Andrés Obrador, is being warned to help businesses affected by the global lockdown. However, with the economy struggling through the recession, he has insisted in cutting public sector spending. The Mexican government has left many businesses to fend for themselves, abandoning them to ride out the crisis wave, with many evidently, drowning. But the president’s attitude is not the only problem. Despite being the world’s 11th largest economy and the home to many of the world’s richest men, almost 50% of Mexicans live below the poverty line. Pausing the Mexican economy has done effectively more damage than the virus.
“The way we’re going, we’re not going to die of coronavirus, but of hunger.” – Ricardo Salinas, business adviser to the President AMLO
In addition to the crisis, which has affected all parts of the world in some way, why are Mexico’s wealthiest fleeing to the UK? The reasons can be split into these categories.
1. Crime and Corruption
Mexico has one of the highest levels of corruption in the world. It is the major center of drug trafficking and violence, especially against women, is widespread. With these security concerns, many entrepreneurs are looking for ways out with a second passport. The UK provides an excellent opportunity for a way out from instability and excessive crime. A steady, successful market, a stable government and an incredible policing system, Britain facilitates perfectly in both providing a safe environment for you and your family, as well as opportunities for stable business expansion.
Education is crucial. People view it as an opportunity to get out of poverty. But in Mexico, a good education is private, and cannot be afforded. The UK provides excellent opportunities for quality education – and wait for it – it’s free. As well as good quality state education, Grammar schools allow academic students from underprivileged backgrounds to receive Private-School-Level education.
3. Opportunities rely on location
If you live in a poor or dangerous area, it can be difficult to expand your network and encourage customers to buy from you .A client or another company is more likely to buy or do business with you when you operate from a secure financial location. Getting a company registered in the UK, one of the best places to do business in the most respectable financial centres of the world, provides massive opportunities for clientele demand.
4. Don’t expose yourself to one market or currency
Many of my clients have experienced great distress when they were only exposed to the South American market. Any instability economically, and they could be in financial ruin. Opening a UK branch of their business and a business bank account allows diversification of their funds, reducing exposure to any instability and the volatility of an asset’s price movements.
Securing your family and your business’ future is crucial – there is no negative to not putting all your eggs in one basket.