Baja California
From The Report: Mexico 2014
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The farthest north-west state in the country with a total population of over 3.3m, Baja California’s access to tangible resources – natural gas, water and electricity – and a qualified workforce distinguish the state from other investment regions. The state’s GDP saw a decrease of more than 8% in 2009 due to the economic crisis in the US. Despite this setback, economic recovery has been under way since 2010 with a 2.2% recovery, 4.4% growth for 2011 and 4.2% for 2012. In 2012 the state’s main economic activities by GDP were manufacturing and commerce, with shares of 19.4% and 16%, respectively. Total foreign direct investment was reported at $771.1m for 2013, growing 30% over 2012 figures. By continuing to support education and industry integration, the state could be set to see a shift from manufacturing to the development of an innovation- and research-driven market in the medium-term. This chapter includes an interview with Francisco Arturo Vega de Lamadrid, Governor, Baja California.

Articles from this Chapter

Overview

Demonstrated potential: A diverse population and investments in innovation lend the state much of its long-term strength
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The farthest north-west state in the country, Baja California (BC) is young, both historically and population-wise, and its dynamic economy and natural beauty have drawn a cross-section of inhabitants and businesses from Mexico and abroad. BC has five municipalities – Tijuana, Mexicali, Playas de Rosarito, Ensenada and Tecate – and a total population of over 3.3m, amounting to about 3.5% of Mexico’s inhabitants. The median age of the population is 26 and almost 56% of inhabitants are under the age of 20. With its 951,000 students in 4400 schools, BC also has one of the highest public investments in the education sector. This commitment…

Analysis

Value from integration: Regional relationships are key to manufacturing’s future health
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As in many other sectors, proximity to US markets has been a strong driver of Mexican manufacturing, and Baja California (BC) has developed important infrastructure for the simplification and efficiency of international commerce. Many examples exist, including border crossings, railroad, highways, seaports and airports, which make commercial exchange easier not only with US markets, but also with those in Canada, Latin America and Asia. Additionally, regional integration with neighbouring areas, like San Diego and Imperial County, have created commercial and knowledge exchange opportunities in electronics, medical devices and aerospace. However,…

Interview

OBG talks to Francisco Arturo Vega de Lamadrid, Governor of Baja California (BC)
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Interview:Francisco Arturo Vega de Lamadrid How does not being connected to the national power grid affect power intensive industries? FRANCISCO ARTURO VEGA DE LAMADRID: Thanks to our location adjacent to the eighth largest regional economy in the world, the US state of California, the BC region benefits from enough imported power to service all new investment spaces. The majority of products and services in the area are covered by the North American Free Trade Agreement, which covers the…

Analysis

Location, location, location: Connectivity is key to making the most of the state’s unique position
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With close to 60m crossings per year in both directions, the boundary between Baja California (BC) and the US is the most crossed border in the world. BC is one of six Mexican states that share a border with the US, as well as being one of 11 states with access to the Pacific Ocean coast. The administration is looking to expand the existing infrastructure by including, as part of the State Development Plan, an aggressive public-private partnership (PPP) offering of 120 infrastructure projects in many different fields such as transport, water treatment, storm- and wastewater management, and energy. The cost of this immense project pipeline…

Analysis

Broadening the appeal: Diversifying options for tourists and visitors
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Proximity with the US, particularly California, has made Baja California (BC) an historical access point for tourists seeking everything from beaches to extreme sports to retirement tranquillity. Every year BC’s border sees around 30m inbound crosses from the US. That influx does not include those coming through its airport and seaports, and the state receives more than 16m visitors from abroad each year. The final ingredient of the total is another 11m from within Mexico, according to the Ministry of Tourism (Secretaría de Turismo, SECTUR). Tourism accounts for about 12% of the state’s GDP, according to the ministry, and the domestic…