The strengthening of trade relations between Brazil and Peru is a strategic partnership for the economic development of both countries. While they share a history of economic cooperation, barriers still exist that prevent them from fully maximizing the potential of their exchanges. Although Peru and Brazil signed an Economic Complementation Agreement (ACE 58) in 2006, a crucial step to deepening this alliance remains pending: the ratification of the Economic and Trade Deepening Agreement, signed in 2016. This ratification could unlock billions of dollars in investments across various strategic sectors.

Investment Potential Between Brazil and Peru

Brazil is one of Peru’s main trading partners in Latin America, and the investment prospects in the neighboring country are highly positive. According to the Brazil-Peru Chamber of Commerce (CAMBRAPER), Brazilian investments in Peru could exceed USD 6 billion within three years if the Deepening Agreement is appropriately implemented. This investment flow would be concentrated in traditional mining and key infrastructure, energy, technology, and agribusiness sectors.

Peru’s mining sector is desirable to Brazilian investors due to the country’s abundance of natural resources. Brazil and Peru are strategic partners in the mining industry, as Brazil is one of the world’s leading mineral producers. The complementarity of both markets presents significant opportunities to increase investments in this sector. However, other sectors, such as renewable energy, transportation infrastructure, and technology, also represent key areas for bilateral collaboration.

Challenges and Opportunities in Trade Relations

The stagnation in implementing the Deepening Agreement has been one of the main obstacles preventing Brazil and Peru, strategic partners, from maximizing their economic potential. The Brazil-Peru Chamber of Commerce has pointed out that the lack of ratification has limited the growth of trade relations between the two countries despite previous advances. Implementing this agreement would foster greater economic integration, facilitate trade, reduce tariff barriers, and provide new opportunities for investors.

One of the main benefits of the agreement is access to a broader and more competitive market. With a population of over 210 million, Brazil offers a massive market that could become a key logistics hub for regional trade, combined with Peru’s strategic geographic location. Brazil and Peru are strategic partners in developing new trade routes and opening new markets with the possibility of creating more efficient supply chains, which are factors that would further strengthen trade relations between the two countries.

Sectors with the Highest Growth Potential

Numerous sectors have strong growth potential in Brazil, and both countries are strategic partners in trade relations. First, the infrastructure sector presents significant opportunities for collaboration. Brazil has extensive experience constructing large-scale infrastructure, including bridges, highways, ports, and airports, while Peru urgently needs to improve its infrastructure to support sustained economic growth. Cooperation in this area would enhance Peru’s competitiveness and create thousands of jobs in both countries.

Another key sector is energy, particularly renewable energy. Brazil has made significant progress in implementing solar and wind energy projects, while Peru has great potential to leverage these renewable sources. Collaboration in this sector could improve energy security for both countries and reduce their dependence on non-renewable energy sources, thereby contributing to environmental sustainability.

The agricultural and agribusiness sectors are also fundamental to Brazil-Peru relations. Both countries are major food producers and can supply global markets with soy, corn, coffee, fruits, and vegetables. Cooperation in this area would enhance agricultural practices, increase productivity, and promote trade in value-added products, opening new export opportunities.

The Role of the Brazil-Peru Chamber of Commerce (CAMBRAPER)

The Brazil-Peru Chamber of Commerce (CAMBRAPER) has promoted trade exchanges between the two countries. By implementing the Economic and Trade Deepening Agreement, this organization expects the trade relationship between Peru and Brazil to strengthen even further, generating new opportunities for companies on both sides.

CAMBRAPER has indicated that once the agreement is ratified, Brazilian investments in Peru could be directed toward key sectors with unique growth opportunities. Additionally, the chamber has emphasized eliminating regulatory and tariff barriers that hinder cross-border trade. The swift implementation of these changes is crucial to attracting new investments and fostering a more favorable environment for economic growth.

The Regional Impact of a Deeper Trade Relationship

A deeper trade relationship between Brazil and Peru would have repercussions for these countries and Latin America. Economic integration and enhanced cooperation between regional countries are essential to counter global challenges such as the global economic slowdown and increasing competition in international markets. Brazil and Peru, with their size and growth potential, have the opportunity to become key players in the regional economy, driving Latin America’s development into a more cohesive and competitive economic bloc.

Moreover, collaboration in strategic sectors such as infrastructure, energy, and technology could serve as a model for other countries in the region, which could follow Brazil and Peru’s example to strengthen their trade ties and attract foreign investment.

Brazil and Peru are strategic partners, and their trade relationship is one of the most promising in Latin America. Yet, its potential remains far from fully realized due to the lack of effective implementation of the Economic and Trade Deepening Agreement. Ratifying this agreement could unlock billions of dollars in investments and transform key sectors such as mining, infrastructure, energy, and agriculture. Both countries have the opportunity to strengthen their economic ties and become strategic partners driving regional growth. The Brazil-Peru Chamber of Commerce (CAMBRAPER) continues to play a crucial role in fostering this relationship, and the future looks promising if the current obstacles are overcome.

The Inter-American Development Bank estimates that nearshoring could bring $78 billion in investments to Latin America. According to the Economic Commission for Latin America and the Caribbean (ECLAC), the region’s projected economic growth rate in 2025 is 2.4%. Thanks to nearshoring, Mexico attracted more than $35 billion in foreign direct investment in 2024, highlighting its role as one of the leading Latin American countries in nearshoring.

According to Logística de México (LDM), a consulting firm specializing in supply chain management, Latin America is positioning itself as a key region for attracting foreign direct investment (FDI) thanks to its proximity to major markets like the United States, its trade agreements, and the quality of its workforce.

LDM highlighted that Costa Rica, Brazil, and Mexico stand out due to their favorable conditions for nearshoring, creating opportunities in high-tech manufacturing, medical devices, automotive, and consumer products. Other countries, such as Colombia, Panama, and Peru, are making significant strides in enhancing their logistical infrastructure, free trade policies, and economic incentives, solidifying their positions among the Latin American countries leading nearshoring.

Costa Rica: Sustainability and Specialized Talent

Costa Rica has established itself as an attractive destination for investors, particularly from the United States, which accounts for more than 70% of its FDI. Its focus on sustainability—98% of its electricity is generated from renewable sources—and highly skilled workforce have been key to its success.

The country boasts a strong Free Trade Zone Regime, with parks like The Green Park offering world-class infrastructure and tax benefits for foreign companies. Additionally, a strategy launched by PROCOMER aims to strengthen local ties and create new employment opportunities by promoting knowledge transfer and regional development, according to LDM. The country’s commitment to environmental responsibility and workforce training makes it a key player among Latin American countries leading nearshoring.

Brazil: A Thriving Economic Giant

With a population of 215 million and ranking as the world’s ninth-largest economy, Brazil has become a magnet for Chinese automakers such as Great Wall Motors and BYD and investments in energy, agriculture, and technology.

The government of Luiz Inácio Lula da Silva has implemented bilateral agreements and public incentives to attract foreign capital, solidifying the country as a strategic hub for production and trade in South America. Brazil’s diverse economy, extensive labor market, and rich natural resources provide a stable foundation for nearshoring operations.

Mexico: The Gateway to North America

LDM reaffirmed that Mexico’s proximity to the United States, combined with the advantages of the United States-Mexico-Canada Agreement (USMCA), positions the country as a natural leader in nearshoring in Latin America. Multinational companies find in Mexico a combination of competitive labor costs, efficient supply chains, and a robust domestic industry, particularly in the automotive sector.

Foreign trade plays a crucial role in Mexico’s economy, with more than 45% of its imports from the United States and a steady flow of investments from Asia and Europe. With a change in government on the horizon, an economic revival is expected to enhance these competitive advantages further. However, LDM warned that uncertainty remains regarding the potential impact of protectionist policies, which could be reinstated by Donald Trump, on foreign investment in the country. Despite these challenges, Mexico remains at the forefront of the Latin American countries leading nearshoring efforts.

Colombia: A Strong Structure

Bogotá and Medellín are emerging as key relocation hubs thanks to their continuously improving logistics infrastructure, tax incentives in free trade zones, and competitive business ecosystems. Additionally, Barranquilla plays a strategically important role, as its port—one of the most significant in the region—has been crucial in boosting foreign trade and facilitating the movement of goods to international markets.

Barranquilla’s sustained growth as a logistics and port hub complements the efforts of Bogotá and Medellín, driving national economic dynamism. Colombian exports of non-basic products are expected to grow by 11% in 2025, solidifying the country as a high-potential emerging market. These developments place Colombia among the promising Latin American countries leading nearshoring expansion in South America.

Panama: Competitive Economic Zones

The Panama Canal and special economic zones give the country a unique competitive advantage in global trade. The dollarization of its economy eliminates exchange rate risks, while its increasingly bilingual and skilled workforce attracts key sectors such as logistics and industry. Panama Pacifico, a special economic area, has become a magnet for international companies looking for a strategic location to facilitate trade between Asia, North America, and South America.

Panama’s government continues implementing policies to strengthen its position as a logistics hub. Recent investments in infrastructure and digital transformation initiatives further enhance the country’s ability to attract multinational corporations.

Peru: A Strategic Trade Hub

For Peru, the development of the Port of Chancay, whose inauguration was scheduled for 2024, marks a strategic milestone in its logistics infrastructure. Located 80 kilometers from Lima and developed by COSCO Shipping, this port directly connects Latin America with Asia, facilitating international trade and reducing logistics costs.

In the context of nearshoring, the Port of Chancay enhances foreign investment attraction by offering a strategic location and modern infrastructure. This project strengthens Peru’s role as a key hub in global supply chains, boosting its commercial competitiveness. With these improvements, Peru joins the ranks of Latin American countries leading nearshoring by offering vital trade connections and logistical advantages.

“Nearshoring is a trend and a strategy redefining global supply chains. With its proximity to major markets and highly skilled talent, Latin America is emerging as the epicenter of this transformation,” stated José Ambe, CEO of Logística de México.

As nearshoring continues to gain momentum, Latin America is becoming one of the most promising regions for 2025. Countries like Costa Rica, Brazil, and Mexico lead the way, attracting investment, creating jobs, and fostering collaboration between businesses and local communities. The consulting firm concluded that this transformation redefines global supply chains and drives regional economic and social development, positioning Latin America as an increasingly important player in the global market.

Introduction

Panama’s tourism sector is gaining global attention as a prime destination for investment and sustainable development. The Tourism Doing Business – Investing in Panama guide, launched during FITUR—the leading tourism fair for the Ibero-American world—provides a comprehensive analysis of the country’s tourism potential. The guide, prepared by CAF—Development Bank of Latin America and the Caribbean—and UN Tourism, highlights Panama as a strategic location for local investments and a gateway for regional expansion.

Panama’s Strategic Advantage in Tourism

Panama’s unique geographical position, political stability, and continuous economic growth make it an attractive destination for tourism-related businesses. The Tourism Doing Business – Investing in Panama guide positions the country as a global leader in connectivity and logistics. With a world-class logistics platform, Panama serves as a maritime and air transport hub, facilitating the movement of goods and travelers across the globe. The expansion of Tocumen International Airport, known as the “Hub of the Americas,” further strengthens Panama’s role as a key transit point, enhancing tourism opportunities in Panama.

Sustainable Tourism Growth and Investment Potential

Investments in infrastructure and economic sectors related to tourism have the potential to benefit the entire Panamanian population. CAF and UN Tourism promote green, inclusive, and sustainable tourism growth. As such, the guide underscores the need for investment in projects that align with environmental sustainability, cultural preservation, and digital transformation.

Sergio Díaz-Granados, Executive President of CAF, highlighted that the tourism sector plays a crucial role in the triple transition—green, digital, and energy—with a strong focus on human development. He stressed that climate change adaptation initiatives and biodiversity conservation efforts complement tourism growth, ensuring long-term sustainability.

Panama’s Commitment to Green, Blue, and Cultural Heritage Tourism

According to Gloria de León Zubieta, Minister of the Panama Tourism Authority, the country offers sustained opportunities in three key tourism areas:

• Green Tourism: Panama has significantly expanded its protected areas from 33% to 54%, demonstrating a strong commitment to conservation. As one of the few nations with negative carbon emissions, Panama provides an ideal environment for ecotourism and nature-based travel experiences.
• Blue Tourism: With its extensive coastlines along the Pacific Ocean and the Caribbean Sea, Panama is an emerging destination for marine tourism, including scuba diving, sustainable fishing, and adventure sports.
• Cultural Heritage Tourism: Rich in history and traditions, Panama boasts UNESCO World Heritage sites, indigenous communities, and historic landmarks such as Casco Viejo and the Panama Canal. Expanding heritage tourism routes further enhances tourism opportunities in Panama.

Zurab Pololikashvili, Secretary-General of UN Tourism, praised Panama’s leadership in environmental preservation and highlighted the nation’s ability to attract investment through sustainable tourism initiatives. With an ambitious infrastructure agenda, Panama is well-positioned to foster tourism growth while maintaining its ecological and cultural heritage.

Infrastructure Developments and Modernization

Panama’s government and private sector continue to invest in infrastructure that supports the tourism industry. Major projects include:

• Expansion and modernization of airports, roads, and tourism facilities.
• Developing sustainable hotels and resorts in key destinations such as Bocas del Toro, Boquete, and the Pearl Islands.
• Digital transformation initiatives to enhance visitor experiences through innovative tourism solutions and digital payments.
• Improvements in public transportation, including metro and bus systems, to facilitate tourist mobility.

These efforts create a fertile ground for tourism investments aligned with principles of innovation, accessibility, and sustainability.

Economic Stability and Investment Security

Panama’s economic strength adds another layer of appeal for investors in the tourism sector. The Tourism Doing Business—Investing in Panama guide presents the country as a safe and stable destination for tourism investments. With a GDP growth of 10.8% in 2022 and 7.3% in 2023, Panama ranked as the second-fastest-growing economy in the region. While growth is expected to moderate to 2.5% in 2024, the country remains an attractive investor hub.

Panama has been a CAF member since 1997, benefiting from financial and technical support across key sectors. CAF has approved 105 credit operations exceeding $7 billion to enhance the country’s infrastructure, education, water supply, telecommunications, and social development. These investments directly contribute to improving the tourism sector, reinforcing tourism opportunities in Panama for both local and foreign investors.

Emblematic Tourism Projects and Future Outlook

Several flagship tourism projects further showcase Panama’s potential:

• Heritage Route Expansion: Strengthening historical and cultural tourism by restoring colonial sites and indigenous heritage trails.
• Ecotourism Development: Enhancing national parks and protected areas for sustainable tourism, including wildlife observation and adventure tourism.
• Luxury and Wellness Tourism: Encouraging investments in high-end resorts and wellness retreats catering to international travelers.
• Cruise and Marina Expansions: Increasing Panama’s presence in the cruise tourism industry with modernized ports and facilities.

The future of Panama’s tourism sector looks promising, with continued support from international organizations like UN Tourism and CAF. As the country advances in green, digital, and economic transitions, tourism opportunities in Panama will continue to expand, solidifying its position as a premier destination for investment and sustainable tourism growth.

Conclusion

Panama’s strategic location, environmental commitment, and substantial economic performance make it a prime location for tourism investments. The Tourism Doing Business – Investing in Panama guide highlights key opportunities for businesses and investors, emphasizing sustainability and innovation. With a focus on green, blue, and cultural heritage tourism, Panama offers a diverse and dynamic environment for growth in the sector. As infrastructure projects continue and new tourism initiatives emerge, the country remains a top destination for those seeking to capitalize on tourism opportunities in Panama.

The Best Alternatives, the Most Valued Areas, and the Right Time to Invest

Investors worldwide are increasingly paying attention to Uruguay’s thriving real estate market. Known for its political stability, robust economic framework, and high quality of life, the country has become a beacon for individuals and companies seeking lucrative real estate ventures. Experts recommend focusing on key areas like Punta del Este, Montevideo, and Maldonado. Additionally, innovative investment options are lowering entry barriers, making investing in real estate in Uruguay easier than ever.

A Highly Profitable Alternative

A Statista report (2025) states that Uruguay’s real estate market outlook is highly optimistic. Projections indicate it will surpass $260 billion by 2025, with consistent growth expected in the following years. This upward trajectory is driven by several key factors, including:

• Sociopolitical stability: Uruguay has long been regarded as one of Latin America’s most politically stable countries.
• A strong macroeconomic environment: Sustained GDP growth and low inflation rates provide a favorable setting for investment.
• Low country risk: Uruguay boasts the lowest country risk index in the region, enhancing investor confidence.
• Pro-investment regulatory frameworks: Laws and incentives facilitate diverse real estate projects, from urban housing to large-scale tourism developments.
• Growing tourism and infrastructure investment: Uruguay’s efforts to enhance its tourism appeal have further stimulated the real estate market.

These factors collectively make it an ideal time to invest in real estate in Uruguay, especially for those seeking long-term returns and security.

Real Estate Development in Uruguay

At the Forbes Real Estate Summit 2025, experts discussed the latest trends and opportunities in Uruguay’s real estate sector. Francesca Magno, a partner at Andersen Uruguay, highlighted a growing trend: “International clients looking for a place to live and invest are often surprised by Uruguay’s high and globally competitive returns on real estate development.”

Property Transactions and Investment Opportunities

Specialists at Berserkers Finance have noted that Uruguay’s real estate sector offers diverse opportunities, including:

• Residential properties: These cater to families and professionals moving to Uruguay.
• Commercial properties: Ideal for businesses seeking expansion in a stable market.
• Rental and tourism properties: Uruguay’s booming tourism sector makes rental properties near the coast particularly attractive.

The most dynamic cities for these investments include:

Punta del Este

Known as the “Monaco of South America,” Punta del Este boasts pristine beaches, luxury resorts, and a vibrant real estate market. Projects like Torres Cardinal, Manglar, and Walmer Lagoon have elevated the city’s appeal. Whether targeting high-end vacation rentals or permanent residences, investors can expect strong demand and excellent returns.

Montevideo

Uruguay’s capital is a hub of economic activity and cultural vibrancy. The city’s growing population and expanding infrastructure have driven demand for residential and commercial properties. Landmark developments such as Cala del Yacht, BeOne, and Newland cater to various investor profiles. For those looking to invest in real estate in Uruguay, Montevideo offers unmatched diversity and potential.

Maldonado

Located near Punta del Este, Maldonado combines tranquility with accessibility. Its lower entry costs and proximity to major attractions make it an excellent choice for budget-conscious investors. Projects like Laguna de los Cisnes, Newland, and Torres Cardinal provide comfort and potential appreciation.

New Ways to Invest

Uruguay’s real estate market is evolving, offering innovative ways to participate:

• Pre-construction purchases or trust funds: This system enables buyers to acquire property during construction by making regular contributions. For example, Pilay square meters allow incremental investment, making it ideal for those with limited initial capital.
• Crowdfunding: Platforms like Bricksave allow multiple investors to pool resources to purchase shares in a property, offering fixed returns without the need for significant upfront investment.
• Tokenized property shares: Blockchain technology has introduced an exciting new option for real estate investment. Platforms like Reental and Kodo Assets offer tokenized property shares, enabling investors to enter the market with minimal capital while benefiting from monthly returns.

These approaches have revolutionized how people invest in Uruguay’s real estate, making the market more accessible to a broader audience.

Why Now is the Right Time

Uruguay’s real estate market has entered a phase of unprecedented opportunity. Economic stability, growing tourism, and an influx of international residents have created a perfect storm for investment. The country’s favorable regulations and low barriers to entry further enhance its appeal.

Moreover, Uruguay’s focus on sustainability and green building practices aligns with global trends. For instance, energy-efficient developments and eco-friendly construction methods are becoming standard in cities like Montevideo and Punta del Este. These features attract environmentally conscious buyers and increase property values over time.

Conclusion

Uruguay is one of Latin America’s most secure and profitable real estate markets. Opportunities abound whether investing in luxury properties in Punta del Este, family homes in Montevideo, or budget-friendly options in Maldonado. Innovative platforms and investment methods, such as crowdfunding and tokenized shares, have further democratized access to this lucrative market.

The time is for those looking to invest in real estate in Uruguay. With its stability, profitability, and growth potential, Uruguay offers a safe and rewarding environment for investors seeking to diversify their portfolios. Coastal destinations, residential neighborhoods, and cutting-edge developments ensure something for every budget and preference. By capitalizing on these opportunities today, investors can secure substantial returns in the future.

According to the preliminary report by the Central Bank of the Dominican Republic (BCRD), the Dominican economy experienced a solid expansion of 5.0% in 2024, reaffirming its position as one of the most dynamic in Latin America. This growth aligns with official projections and highlights the strength of the country’s macroeconomic fundamentals despite ongoing global challenges.

Outstanding Economic Performance

The Dominican Republic’s real Gross Domestic Product (GDP) grew by 5.0% compared to 2023, exceeding national and international expectations. This growth underscores the Dominican economy’s resilience and positions it as a leader in the region, standing out among the 17 largest economies in Latin America. This achievement is particularly significant given the global economic uncertainty caused by fluctuating commodity prices, geopolitical tensions, and shifts in international trade dynamics.

Controlled inflation further bolstered the macroeconomic outlook, which closed 2024 at a remarkably low 3.35%, the lowest in six years. This figure fell comfortably within the Central Bank’s target range of 4.0% ± 1.0%, demonstrating a stable price environment. The controlled inflation provided much-needed relief to households and businesses, enhancing purchasing power and fostering economic confidence.

Tourism and Remittances Drive Growth

A key driver of this robust growth was the remarkable performance of the tourism sector, a cornerstone of the Dominican economy. In 2024, the country welcomed a record-breaking 11.2 million tourists, including 8.5 million who arrived by air and 2.6 million via cruise ships. This surge in tourism significantly boosted the hospitality industry, with the hotels, bars, and restaurants sector achieving an impressive growth rate of 9.6%. The record visitor numbers were attributed to strategic marketing campaigns, expanded airline connectivity, and a focus on diversifying tourist offerings to appeal to a broader demographic.

In addition to tourism, remittances played a crucial role in sustaining the Dominican economy. The country received a historic US$10.76 billion in remittances, reflecting a 5.9% increase compared to the previous year. These funds, sent predominantly by the Dominican diaspora in the United States, Europe, and other parts of the world, were instrumental in supporting household consumption, funding education, and driving investments in small businesses. The consistent rise in remittances underlines the strength of the country’s ties to its diaspora and its continued commitment to the nation’s economic well-being.

Foreign Investment and a Robust External Sector

The Dominican Republic also demonstrated its ability to attract foreign investment, a key component of its economic strategy. In 2024, foreign direct Investment (FDI) reached an impressive US$4.51 billion, surpassing the US$4 billion mark for the third consecutive year. This level of investment underscores the confidence of international investors in the Dominican economy, given its stability, economic potential, and business-friendly environment. FDI inflows were primarily directed toward key sectors such as tourism infrastructure, real estate, renewable energy, and manufacturing, further diversifying the economic base.

The export sector also posted strong results, with total exports rising by 7.0% year-on-year. National exports, particularly gold and cacao, contributed significantly to this growth. The expansion of free trade zones played a pivotal role in this success, enabling Dominican manufacturers to access global markets with competitive products. Additionally, initiatives to improve port infrastructure and streamline customs processes have made the country more attractive to exporters and trading partners.

Monetary Policy and Financial Stability

The Central Bank of the Dominican Republic maintained an active approach to monetary policy throughout 2024, effectively managing liquidity in the financial system to support economic growth. During the year, the Central Bank reduced its policy interest rate by 275 basis points, which helped lower borrowing costs, encourage investment, and sustain economic dynamism. This monetary easing also contributed to exchange rate stability, providing a stable environment for trade and investment.

The Dominican financial system remains a pillar of economic stability, characterized by high levels of solvency and profitability. As of the end of 2024, the banking system’s return on equity (ROE) stood at an impressive 22.8%, while the non-performing loan ratio was a low 1.4%, reflecting prudent risk management practices. These metrics highlight the robustness of the financial sector, which continues to play a crucial role in funding economic activities and supporting businesses of all sizes.

Outlook for 2025

Looking ahead to 2025, the Dominican Republic is well-positioned to sustain its strong economic performance. The Central Bank has adopted forward-looking monetary policies to foster continued economic dynamism while maintaining inflation and exchange rate stability. Combined with government initiatives to enhance infrastructure, promote innovation, and attract foreign investment, these measures are expected to reinforce the country’s growth trajectory.

Key sectors like tourism, remittances, and exports will likely remain vital drivers of the Dominican economy. The ongoing development of eco-tourism projects, luxury resorts, and cultural heritage initiatives will ensure the tourism sector thrives. Meanwhile, the steady growth of remittances will provide a reliable source of income for households and stimulate domestic consumption.

The government’s commitment to expanding trade agreements and integrating into global supply chains will further strengthen the Dominican economy’s external sector. Efforts to diversify exports and explore emerging markets will enhance resilience against global economic shocks, ensuring long-term sustainability.

In conclusion, the Dominican Republic’s impressive economic growth in 2024 reflects its strong fundamentals, strategic policymaking, and the resilience of its key sectors. With a favorable outlook for 2025, the country is poised to continue its trajectory as a regional leader in economic performance and stability.

Investment in the state exceeds $8.9 billion, according to Claudia Cristina Villaseñor Aguilar, Secretary of Economy. Japanese companies in Guanajuato have invested more than $8.9 billion in various projects, generating 48,140 new direct jobs, stated Claudia Cristina Villaseñor Aguilar, Secretary of Economy. This achievement has positioned the state as the leader in foreign investment.

Japan as Guanajuato’s Key Economic and Cultural Partner

State authorities recognized this during the New Year celebrations in Japan, highlighting that Japan is not only Guanajuato’s leading economic partner but also a key cultural and social ally in the region. Japanese investment in Guanajuato has been pivotal in transforming the state into a hub for innovation and industrial growth.

Automotive Industry Drives Economic Expansion

Japanese companies’ investments have materialized in 145 projects. These include automakers such as Toyota, Mazda, and Honda, as well as many companies involved in the auto parts, components, and services supply chain. Toyota, for example, has established a significant manufacturing plant in Apaseo el Grande, where it produces the Tacoma pickup truck for domestic and export markets. Mazda operates a major facility in Salamanca, producing vehicles like the Mazda3 and Mazda2 models. Honda’s presence in Celaya focuses on producing compact cars and motorcycles, further reinforcing the state’s reputation as a leading automotive manufacturing center.

Broader Impact of Automotive Supply Chain Companies

In addition to automakers, numerous Japanese companies specializing in auto parts and components have invested heavily in Guanajuato. These include Sumitomo Electric, which produces wiring harnesses, and Aisin Seiki, a key supplier of automotive transmissions and other components. Other prominent firms like Denso specialize in advanced automotive systems like air conditioning and engine cooling modules. The presence of these companies has bolstered Guanajuato’s competitiveness on a global scale, with products manufactured locally being exported to various countries.

Geographic Reach of Japanese Investments

These companies have a presence in various municipalities, including Acámbaro, Abasolo, Apaseo el Alto, Apaseo el Grande, Manuel Doblado, Celaya, Comonfort, Coroneo, Cortazar, Cuerámaro, Doctor Mora, Dolores Hidalgo, Guanajuato, Huanímaro, Irapuato, Jerécuaro, Juventino Rosas, León, Ocampo, Pénjamo, Purísima del Rincón, Pueblo Nuevo, Romita, Salamanca, Salvatierra, San Diego de la Unión, San Felipe, San Francisco del Rincón, San José Iturbide, San Luis de la Paz, San Miguel de Allende, Silao, Uriangato, Valle de Santiago, Victoria, and Villagrán. The widespread geographical distribution of these companies ensures that the benefits of Japanese investment in Guanajuato are felt across the entire state.

Advancing Local Economies Through Technology and Supply Chains

Claudia Cristina Villaseñor Aguilar stated that this type of investment brings diversification and a promising outlook for the future of Guanajuato’s residents, as it contributes to improving the work culture and transferring technology. Adopting Japanese methodologies, such as Kaizen and Just-In-Time production systems, has enhanced local manufacturing facilities’ operational efficiency and quality standards.

Opportunities for Local MSMEs in Guanajuato

She also emphasized that the opportunities extend beyond those directly offered by these companies. The investment creates a virtuous cycle that fosters the development of value chains, opening opportunities for micro, small, and medium-sized enterprises (MSMEs) in each locality. Local businesses have been able to integrate into supply chains, providing goods and services ranging from raw materials to specialized logistics solutions. This integration has not only strengthened the local economy but also increased the resilience of the state’s industrial ecosystem.

Expanding Into New Industries

In addition to the automotive sector, Japanese investment in Guanajuato has expanded into other industries, such as electronics, machinery, and renewable energy. Companies like Panasonic and Mitsubishi have created operations to produce advanced technologies, including energy-efficient appliances and industrial equipment. Mitsubishi’s focus on renewable energy projects, such as solar panel production, aligns with Guanajuato’s broader sustainability goals and efforts to transition toward greener energy solutions.

Cultural Exchange Deepens Ties Between Japan and Guanajuato

The cultural impact of Japanese investment in Guanajuato cannot be overlooked. Many Japanese companies have supported initiatives to foster cultural exchange, including Japanese language and cultural programs in local schools. This has enriched the educational landscape and strengthened ties between the Japanese and local communities, creating an environment of mutual respect and collaboration.

Conclusion

Japanese investment in Guanajuato is a cornerstone of the state’s remarkable economic and cultural transformation. With over $8.9 billion in investments and more than 48,000 direct jobs created, the partnership between Guanajuato and Japanese companies has solidified the state’s position as a leader in foreign investment. Japanese enterprises continue to drive industrial growth and innovation across the region, from the booming automotive industry to emerging sectors like renewable energy and electronics. Beyond economic benefits, this collaboration has fostered cultural exchange, technology transfer, and supply chain development, empowering local businesses and communities. Guanajuato embraces Japanese methodologies and strengthens its value chains, building a resilient, competitive, and sustainable industrial ecosystem. Looking ahead, the enduring partnership with Japan promises to unlock new opportunities, further positioning Guanajuato as a global benchmark for economic and cultural collaboration.