Mexico

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With Covid-19 facilitating the widespread adoption of remote working practices, some emerging markets are seeking to attract digital nomads through a series of incentives and special visas.

In a bid to offset economic headwinds associated with the coronavirus pandemic, Mexican president Andrés Manuel López Obrador (widely known as AMLO) announced an infrastructure investment plan of nearly $14bn, aimed at supporting business and stimulating an economic recovery.

Despite predictions of a significant fall as a result of Covid-19, remittances into some Latin American countries have actually increased following the outbreak of the coronavirus pandemic.

While Mexico’s economy is being badly hit by Covid-19, the US-Mexico-Canada Agreement (USMCA) – and, in particular, new intellectual property (IP) laws – could potentially boost the long-term prospects of its industrial and pharmaceutical sectors.

Covid-19 has had a significant impact on the Latin American residential real estate market, with the economic slowdown and increased investor uncertainty serving to dampen growth in the short term. Nevertheless, the pandemic has stimulated demand for both rental properties and accommodation with outdoor space, while also accelerating the digitalisation of the industry and boosting competition among mortgage lenders.

‘Nearshoring’ – whereby companies shift their offshore production capacities closer to home – is experiencing significant growth in Latin America amid the coronavirus pandemic.

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