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The impact of Baja’s Fast Growing Economy
Baja California is a state that has been transformed by the local people; changing the desert into agricultural valleys, they have been able to establish a positive attitude towards growth.
Baja California has more than 1500 kms of coastline, seas and excellent land for harvest.
The state covers 5 main cities: Mexicali, the state capital that it is recognized by its industrial agricultural activities. Tijuana that stands out by its dynamic industry of maquiladoras, businesses and services. Ensenada, with the most important port in the state and a great location for fishing, agriculture and the mining industry. Tecate recognized by its beer industry and relaxed tourism and Playas de Rosarito, an important tourist destiny with beautiful beaches and incredible weather to offer its visitors.
“ Since 1995, after signing the Free Trade Agreement, the production and internal consumption increased at a gigantic pace. In 2005, 16,000 million dollars were exported in the whole year and in 2006 about 90,000 million dollars.
Internal consumption has increased in Mexico at a similar pace, there is a housing boom all through the Mexican Republic, reporting more than 1 million houses a year, as a result of higher income…Years ago, credit was inaccessible in this country, and now almost everyone can qualify.
We are looking at a growth that many Latin American countries and the rest of the World wished…” Gustavo Torres, President of AMPI comments on the economic growth of Mexico, he adds the following facts “ Mexico’s economy in 2005 grew close to 5% and in 2006 a similar percentage, it is estimated that in 2007 it will grow at the same rate.
While the growth rate in the United States is 3%, in Baja California is around 8.5%, almost at the same pace that the impressive Chinese economy.
Baja California is the second state in Mexico with biggest foreign investment, it is also the state with lowest percentage of poverty, more than 8 times lower than the percentage in Chiapas.
Thanks to the political and social stability that the country has enjoyed, Mexico has become a highly attractive destiny for permanent foreign investment.”
The Mexican businessman Carlos Slim mentioned in a conference that the 10 states that are in the border between Mexico and the United States, represent the third economy of the World with more than 3 billion dollars. He also mentioned that the 6 Mexican states and the 4 American states integrate a market of 92 million people, with an income of 40,000 million dollars per year.
The multimillionaire, owner of Telmex, América Móvil and Grupo Carso, emphasized the great business potential in both sides of the border in different sectors, especially the service sector.
On July 10th, 2007 at a Border Region Forum in Hermosillo, Sonora; Carlos Slim mentioned that the border estates on both countries should make a long term development plan.
There is no doubt Baja California, as one of these border estates has the elements to keep on growing like a true tourist development and a second home destiny, this is the reason why there must be proper regulations necessary for a sustainable boom as a result of the investments in the real estate field that will definitely attract more interest into the area.