The other Rising Economic Giant of the Asia-Pacific June 2 ND, 2014

In th largest economy, according to Goldman Sachs. Forecasts 2 According to Accenture, Mexico will be one of the Big Six. In 2050 According to HSBC Mexico will be the 8 th largest economy. 14 th LARGEST ECONOMY 5 México 4 Brazil 3 India 2 USA 1 China 14 Mexico 12 Australia 10 India 8 Russia 6 United Kingdom 4 Germany 2 China 1 USA World’s largest economies in 2013 Source: ProMéxico with information of Goldman Sachs. The N-11: More Than an Acronym. Documento de economía mundial No: 153. Marzo de 2007/ HSBC/ ACCENTURE.1/ Pronóstico de Goldman Sachs / Fondo Monetario Internacional.

%+0.1% +0. 5% +1.0% +0. 3% % Labor Reform Telecom Reform Energy Reform Financial Reform Impact of reforms in GDP Forecasts of structural reforms effect on GDP Growth, (%) Source: ProMéxico with information of SHCP. Natural GDP Growth Rate (2013) New Natural GDP Growth Rate (2018)

4 Macroeconomic environment Gateway to America Human Capital Internal Market Sophisticated economy 5 competitive advantages

5 Bilateral trade between Mexico and Australia ( ) Source: ProMéxico with information of Banxico, Exports MUSD ImportsTrade balance

Mexico: 14th largest country Equals to the size of the four largest countries in Europe Germany Sweden France Spain =

Solid macroeconomic environment 7 Evolution of inflation, exports and international reserves in Mexico ( ) Infllation 2013 Reserves 2013Exports %176 billion USD 380 billion USD Manufactures Oil Primary Reserves Inflation Record-high Billion USD Source: ProMéxico with information of INEGI / Bank of Mexico.

Exports per capita 8 Source: ProMéxico with information of GTA/ Bank of Mexico/ Ministry of Commerce and Industry of Brazil / Russia’s Central Bank/ BEA/ Stratcan. Canada USA Mexico Russia China Brazil India , , , , , , , , Exports per capita (selected economies), Thousand USD

FDI flows into Mexico ( *) 9 Source: Ministry of Economy. General Directorate of Foreign Investment. */ Figures to September Record-high MUSD

10 Source: Fitch Ratings, Standar & Poor’s Rating Services, Moody’s Investor Service. A3 Baa1 Baa3 BBB+ BBB BBB- BBB+ BBB BBB- Positive Ratings Mexico: sovereign debt credit ratings

11 We are commited to free trade Our FTAs give privileged access to 1.2 billion consumers. Brazil 8 China 19 United States 20 Colombia 42 Source: ProMéxico with information of Brazil; China: Colombia:; United States: ; Chile: Direcon; Mexico: Ministry of Economy. 45 countries with FTA’s With the TPP, Mexico will increase its presence in Australia, Brunei, Malaysia, New Zealand, Singapore and Vietnam.

12 Mexico as part of NAFTA +50 border crossings with the US. NAFTA market= 19 trillion USD. 16 trillion European Union. Bilateral trade with the U.S.= 1 million dollars per minute. 1 million people and 300 thousand vehicles crossing the border daily. NASCO Corridor Source: ProMéxico with information of SCT/ US Department of Transportation.

13 Youth Old-age Demographic Bonus Men Women Demographics are on our side Source: ProMéxico with information of US Census Bureau: ; INEGI, 2011; Population Projections for Mexico , CONAPO. *Population (in millions) by age group.  118 million inhabitants with a median of 27 years.  52 million in the labor force.  According to forecasts, there will be more than 83 million people of productive age by 2020.

Mexico: demographic sweet spot 14 Importaciones mexicanas hacia Australia China Chile Mexico Brazil Working Age Population Indexed: 1990 = 100 Source: ProMéxico with information of United Nations, Haver Analytics.

15 Mexico private Consumption outpaces its peers 36% ChinaMexicoBrazilColombiaIndiaIndonesia 58% 61%62% 69% 2013 Private Consumption as a % of GDP Source: ProMéxico with information of Instituto Brasileiro de Geografia e Estatística, Departamento Administrativo Nacional de Estadísticas, Instituto Nacional de Estadística Geografía e Informática, Central Statistical Organization, India, Badan Pusat Statistik, China National Bureau of Statistics, Haver Analytics.

16 Mexico’s Retail Sales Index Index 2003=100; SA GDP by PPP ( ) $15,000 USD= median income. According to forecasts, income will grow 20% by Large domestic market Source: INEGI/ IMF. HistoricForecast

Mexico’s global leadership 17 IT 3rd largest exporter in the world. AUTOMOTIVE AND AUTOPARTS 8 th producer and 4 th exporter globally of new light vehicles in the world. ELECTRIC- ELECTRONIC Leading flat television screen exporter in the world. AEROSPACE Mexico is the 6th supplier to the American aerospace industry. Source: ProMéxico with information of FEMIA, GTA, AMIA y OICA.

Exports of Medium and high manufactures as percentage of the GDP (2013)* % 24.8% 16.7 % 14.1% 12.4% Germany South Korea China Mexico France A sophisticated economy Source: ProMéxico with information of IHS – Global Insight. / * Only G20 nations.

+52 (55) Camino a Santa Teresa 1679, Col. Jardines del Pedregal CP 01900, México, D.F. 19