In the early 1970s, before the Transpeninsular Highway was completed, and before Mexican tourism trust FONATUR began turning Los Cabos into the internationally famous resort destination it would eventually become, two groups of people were already regularly flocking to the area: fishermen and surfers.
The first generation of surfers started coming from California in the 1950s, setting the path for all who followed, including legendary figures like Mike Doyle, Kelly Slater, and Laird Hamilton. Doyle, a champion surfer during the 60s, became a notable exponent of the Los Cabos lifestyle, eventually founding a surf school at the Cabo Surf Hotel. Slater wowed spectators at the Fletcher Los Cabos Classic in 1991, walking away with cash and ownership of an East Cape property. More recently, Hamilton partnered with local luxury resort One&Only Palmilla on a lifestyle-based apparel brand. In Los Cabos, where spectacular suites and villas are often situated near some of the most famous breaks, luxury and surfing aren’t always mutually exclusive.
It’s not the big names or the big-time amenities, however, that make Los Cabos a notable surfing destination. Rather, it’s the variety of surf breaks across a wide swath of the municipality’s 100-plus miles of coastline, from San José del Cabo and the East Cape to the Pacific Coast breaks near Todos Santos. Great waves are rideable year-round, with the breaks of choice varying according to the changing of the seasons. Yes, some of these breaks are best left to experienced surfers. But there are beginner-friendly ones, too, along with schools and lesson providers eager to introduce a new generation to the joys of surfing in Los Cabos.
How does the time of year affect surf conditions in Los Cabos?
What’s so special about surfing in Los Cabos? Its coastline is defined by not one major body of water, but two: the Pacific Ocean, and the Gulf of California, or Sea of Cortés. The conditions relative to each, not surprisingly, are the determining factors for the local surf calendar. May to October, for example, is traditionally the best time to surf on the Gulf of California side (thanks to seasonal southerly swells), while the scene shifts to the Pacific side from November to April, notably at beaches like Cerritos, San Pedrito, and La Pastora. Surfing is good year-round, in other words.
For context, Gulf of California-oriented beaches and breaks are those found in San José del Cabo, on the East Cape, and along the Tourist Corridor (the 20-mile coastal corridor that connects San José to Cabo San Lucas). The best Pacific Ocean side surf beaches are about one hour north of Cabo San Lucas by car and are located in Pescadero and Todos Santos.
Why is San José del Cabo such a great surf destination?
Surfing in Los Cabos starts with Zippers, a fast and fun right-hand reef break that has been the centerpiece of both the Fletcher Los Cabos Classic and Association of Surfing Professionals (ASP) and World Surf League (WSL) sponsored Los Cabos Open of Surf tournaments. As Surfline notes, it’s “dreamy except for the fact that Zippers is Cabo’s most crowded wave.”
Zippers is one of three noteworthy breaks at Playa Costa Azul, the others being The Middle and The Rock (La Roca). The latter is another popular, advanced-level, righty reef break, and as the name suggests, rocks (plural) are a factor. The Middle, by contrast, is one of the best beginner-friendly surf breaks in Los Cabos. A respected local adventure company, High Tide Los Cabos, has surf professionals teaching private and group lessons here. Nearby Playa Acapulquito (aka Old Man’s) is another great spot to learn or improve rusty skills, thanks to the Mike Doyle-founded surf school at the Cabo Surf Hotel.
Can you surf in Cabo San Lucas?
There are no notable surf breaks in Cabo San Lucas proper, but one is nearby, with picturesque backdrops of Land’s End and El Arco. It’s a famous one, too, and not just for the views. Monuments is its name, and its spinning left-handed point break ranks with Zippers as the most famous ride on Los Cabos’ Gulf of California side. Like La Roca, it’s best left to experts, not only because of rocks but also because of abundant stinging sea urchins.
The Cape, A Thompson Hotel, a luxury property that opened overlooking the beach (Playa Monumentos) in 2015 provides a retro California-style atmosphere, albeit of the decidedly upscale variety. A surf-themed villa and board rentals are available.
Which East Cape beaches are surfari-worthy?
Los Cabos’ East Cape begins at the outskirts of San José del Cabo and extends for over 70 miles to Los Barriles. Because dirt roads are still common in this area, some surfers have been introduced to regional surf breaks through “surfaris,” or transportation-provided expeditions from San José. However, as the East Cape continues to be developed — the Four Seasons Resort Los Cabos at Costa Palmas being a notable recent addition — surf-friendly beaches like Shipwrecks, La Fortuna, and Nine Palms will become increasingly accessible.
All three of the most popular surf breaks here are located in and around — to the north and south — of La Fortuna, one of several small off-the-grid communities along this stretch of coast. The ALA1A Surf Lodge trailer is the accommodations option of choice, putting surfers within easy driving distance (15 minutes either way) of Shipwrecks, the southernmost of the trio, a favorite of locals when the summer season brings southerly swells fueled by the region’s famous chubascos (squalls). Just don’t look for the shipwreck. It’s long gone.
What are three top Pacific Coast beaches for visiting surfers?
Like nearby San Pedrito — home to a rippable right-hand point break — Playa Los Cerritos is located in the small town of Pescadero, a few miles south of Todos Santos. The latter is famed for both its artists’ colony and its surfing, most famously at La Pastora, a local hotspot that benefits from seasonal northwest swells, and features both left and right-breaking sections. These Pacific Coast beaches are gorgeous year-round, but see their best surfing during the winter months; meaning, peak season for snowbirds.
Chris Sands is the Cabo San Lucas local expert for the USA Today travel website 10 Best, writer of Fodor’s Los Cabos travel guidebook, and a contributor to numerous websites and publications, including Tasting Table, Marriott Bonvoy Traveler, Forbes Travel Guide, Porthole Cruise, Cabo Living and Mexico News Daily. His specialty is travel-related content and lifestyle features focused on food, wine and golf.
San Miguel de Allende is one of the cities that could get its own airport in the near future. (Depositphotos)
The major tourist destination of San Miguel de Allende, Guanajuato, and the northern city of Ensenada, Baja California, could have new airports in the near future according to the Ministry of Infrastructure, Communications, and Transportation (SICT).
The SICT has requested over 15 million pesos (US $860,415) from the Finance Ministry to conduct feasibility studies, as part of a plan to strengthen the country’s airport network.
San Miguel de Allende is currently served by the Guanajuato and Querétaro airports, each located over an hour away from the popular tourist city. (Afeardv/Wikimedia)
“These studies will include surveys to determine the groundwater level and soil layers’ capacity to support the buildings as well as carrying out foundation solution proposals,” the Minister of the SICT Jorge Nuño announced during his appearance in the Chamber of Deputies on Dec. 6.
“Both projects include a study that outlines the development of airport infrastructure in short, medium, and long-term phases,” Nuño added. The feasibility studies are expected to be completed by August.
Both cities have been on the radar for their own airports since earlier this year.
Ensenada’s close proximity to the United States means it could benefit from the nearshoring boom the region is experiencing and while it does have a military base for civil aviation, the site is unsuitable for larger aircraft.
However, independent aviation analyst Juan Antonio José told news outlet T21 that neither of the projects has potential for profitability since San Miguel de Allende is close to two existing international airports, while Ensenada is located near the international airport in Tijuana.
The Basilica will be open from 6 a.m. to 9 p.m. today and tomorrow, although opening hours could be extended if necessary. (Belikova Oksana/Shutterstock)
This Tuesday (Dec. 12) marks one of the biggest dates on Mexico’s Catholic calendar, the Day of the Virgin of Guadalupe, and pilgrims are flocking to Mexico City’s Basilica of Guadalupe to pay homage to the country’s beloved Virgin Mary.
The Citizen Security Ministry (SSC) estimates that 11 million pilgrims will visit the Basilica between Monday and Tuesday, with most arriving on Monday. The National Chamber of Commerce, Services and Tourism predicts an even higher turnout of 13.7 million pilgrims – 12% more than the record-breaking 12.5 million who attended last year.
The world-famous Mexico City shrine to the Virgin Mary could see more than 13 million visitors this year, many of them pilgrims who’ve traveled thousands of miles. (Photo: Mike Peel/Creative Commons)
In preparation for the event, the SSC has announced the “Welcome Pilgrim” operation, in which more than 22,000 public officials will participate, including 1,500 police officers, six ambulances and a helicopter.
“We will have the support of 448 vehicular units, four operation bases, and we will have special care, protection and attention on the access roads,” said Mexico City’s head of government, Martí Batres, with regard to the operation.
The vice-rector of the Basilica of Guadalupe, Gustavo Watson, said that the Basilica will be open from 6 a.m. to 9 p.m., although opening hours could be extended if necessary. Some overnight stays will be permitted in the atrium, with priority given to the elderly and those who have made the longest journeys.
Watson encouraged all who are faithful to visit the ‘Morenita del Tepeyac’ on her feast day, while also stressing that the festivities will be streamed digitally for those unable to attend.
The festival celebrates the appearance of the Virgin Mary (known in Mexico as Guadalupe) to the Indigenous convert Juan Diego on Dec. 12, 1531. Both the figure of Juan Diego and the darker-skinned depiction of the Virgin of Guadalupe are important elements of Mexico’s syncretic tradition, representing Indigenous Mexico’s embrace of Catholicism.
Last year’s celebration broughtrecord-breaking numbers of pilgrims to the capital, after two years during which the event was suspended due to the COVID-19 pandemic. It is the biggest annual pilgrimage in Mexico, with some traveling hundreds of miles to attend.
The event is also an important money-maker for businesses that provide transport, accommodation, food and religious items to the pilgrims. This year, the National Chamber of Commerce, Services and Tourism estimates that the celebration will generate 15.5 billion pesos (US $889 million) in revenue across the country.
Revenue of 1.4 billion pesos (US $81 million) is predicted in Mexico City alone – 13.8% more than in 2022.
On Dec. 8 clash, a group of México state farmers clashed with suspected cartel members, leaving 14 people dead. (Screen Capture/Cuartoscuro)
A confrontation on Friday between residents of a municipality in southwestern México state and alleged members of a criminal group left 14 people dead and seven injured, authorities said.
The extortion-related clash between farmers and suspected members of the La Familia Michoacana criminal organization occurred on a soccer field in Texcapilla, a small community in Texcaltitlán, a municipality around 130 kilometers southwest of Mexico City.
The bodies of the 10 slain alleged cartel members were set on fire by the locals. (Crisanta Espinosa Aguilar/Cuartoscuro)
In footage posted to social media, gunshots can be heard ringing out as farmers and other locals, many wearing cowboy hats, attack suspected criminals with weapons such as sickles and machetes.
The confrontation reportedly occurred after members of La Familia Michoacana – a notoriously violent cartel – attempted to raise the payments they were demanding from farmers and business owners in exchange for allowing them to operate unimpeded.
México state officials told a press conference on Saturday that 10 of the dead were presumed members of the criminal gang, while four were residents of Texcaltitlán. The bodies of the alleged criminals were apparently set on fire.
Five locals and two suspected gangsters were injured during the clash. The state Security Ministry said in a statement on Friday that two people involved in the conflict were missing.
Law enforcement in México state said they are committed to improving security, while President López Obrador announced the deployment of additional federal law enforcement to the region as well. (Crisanta Espinosa Aguilar/Cuartoscuro)
Attorney General José Luis Cervantes said that three “priority objectives” of law enforcement authorities were among the deceased.
One of those killed was Rigoberto de la Sancha Santillán, a La Familia Michoacana leader known as “El Payaso” (The Clown). De la Sancha allegedly participated in a 2021 ambush that killed 13 police officers in Coatepec Harinas, a México state municipality that borders Texcaltitlán.
México state Governor Delfina Gómez said that she “deeply” regretted the violence on Friday, before declaring:
“These events do not paralyze us. On the contrary, they reaffirm our commitment to improve the security conditions in our beloved state. Rest assured that we will continue working so that episodes like this aren’t repeated. To the [residents of the] south of México state I say, you are not alone, we are with you.”
Extortion is a common – and growing – problem in Mexico, affecting both urban and rural areas of the country. Criminal groups target a wide range of economic sectors including agriculture (avocados, limes, etc.), mining, retail (tortilla shops, markets, etc.) and public transport.
Sandra Ley, a program coordinator for the think tank México Evalúa, told The New York Times that communities sometimes fight back against criminal organizations that are constantly harassing them out of “desperation.”
“The communities do this from a place of feeling fed up, of desperation, from that position of ‘no more,'” she said.
Victims of extortion often say that authorities have done little to combat the problem.
Falko Ernst, senior Mexico analyst for International Crisis Group, told The Times that extortion has become increasingly common here as crime groups “have been morphing away from drug trafficking towards a territorially based extraction model.”
On Monday, President López Obrador described the clash on Friday as “very regrettable” and noted that an investigation is underway. He also said that federal security forces have been deployed to Texcaltitlán, explaining that around 600 soldiers and National Guard Officers were sent to the municipality.
Guzmán Loera, a former Sinaloa Cartel leader who was convicted in the United States on drug trafficking charges in February 2019 and sentenced to life in prison later the same year, has been incarcerated in the U.S. since his extradition in 2017.
Joaquín “El Chapo” Guzmán in U.S. custody in 2017 after he was extradited to the United States to face trial there. (U.S. Department of Homeland Security)
His mother never got the opportunity to visit him in Colorado’s “Supermax” prison as U.S. authorities denied her visa request.
Loera was back in the news in March 2020 when she briefly met with President López Obrador during a visit he was making to Badiraguato. López Obrador was criticized for shaking hands with the elderly woman, from whom he had received a letter asking for the government’s assistance in her quest to visit her son in the U.S.
Loera, who had four sons and two daughters with Emilio Guzmán Bustillos, staunchly defended “El Chapo” and advocated his repatriation. In addition, she “always publicly denied that he was the boss of the most powerful drug cartel in Mexico,” according to Jenaro Villamil, a journalist and president of Mexico’s public broadcasting agency.
Speaking about Loera’s passing at his regular news conference on Monday, López Obrador said that “any human being who loses his or her life deserves respect.”
Her grieving family members deserve “consideration,” he added.
The famous cliff divers say they are looking forward to offering shows to tourists this holiday season. (clavadistaslaquebrada.com)
The La Quebrada diving show in Acapulco has resumed its spectacle 45 days after Hurricane Otis, the strongest hurricane ever to hit Mexico’s Pacific Coast, which damaged much of Acapulco and its surrounding port.
The cliffs known as La Quebrada have been the site of high-diving performances for tourists since 1934. Following Otis, the accumulation of debris along the coast of La Quebrada made the waters unsafe for swimmers and divers alike. This past weekend, however, Acapulco’s divers announced that they will slowly resume the shows, offering two schedules during the December holidays, depending on the number of tourists.
La Quebrada cliff divers, circa 1960s. (Photo: Archive)
The La Quebrada divers jump over 40 meters from the cliffs into a narrow channel below in what is one of the best-known performances in Acapulco. In 2021, the performance won the Touristic Excellence Award in a competition that also included European and Middle Eastern tourist attractions.
On Friday, the divers offered a first performance for free at 1 p.m. local time. “We are offering this show free of charge to the public, locals and tourists, mostly to distract them a little from what has happened in the port,” diver Giovanni Vargas told the news outlet EFE, adding that the divers have seen a drop in tourism after the devastating impact of Otis. A second show began around 6 p.m. and cost the normal entrance price of 100 pesos (US $6) per adult and 50 pesos (US $3) per child.
“We’ll see what happens when the holiday season begins in December,” Vargas continued, “We hope to regularize schedules and welcome many tourists to visit us,” he said.
The divers reminisced about when people used to see them from their boats but could no longer do so due to the losses that occurred with recreational and private yachts. “It’s sad not to have those boats that came to visit us,” Vargas told EFE.
Acapulco’s residents are facing a challenging holiday season with much of the city still lacking running water and many people still missing. Although the official death toll from Hurricane Otis is 50, local news agencies claim that the actual figure could be up to seven times higher.
Looking for a gift for the bookworm in your life? Or curious to expand your knowledge of Mexican history, culture and current events? We have you covered with our favorite reads of 2023, curated by the MND team.
Strangers by Guillermo Arriaga
“Strangers” explores the fascinating boom of science in the eighteenth century and its rivalry with religious and aristocratic standpoints.
The book shows us endearing characters, living on the edge. To write the book, Arriaga, one of Mexico’s best writers, only used words that were used in the eighteenth century.
Recommended by Camila Sánchez Bolaño, features editor
Salvar el Fuego by Guillermo Arriaga
Mexico City-born author and screenwriter Guillermo Arriaga’s novel is my personal favorite of the year. It’s got it all: love, lust, violence, beauty, shame, and deceit. Thanks to an intriguing cast of characters, I’ve learned more about social classism, politics, and modern Mexican culture than I have in my daily life here.
Bonus: It has expanded my Spanish vocabulary tenfold.
Recommended by Bethany Platanella, contributing writer
The Complete Stories of Leonora Carrington
Carrington (1917-2011) was a renegade, aristocratic British Surrealist painter who lived in Mexico City. Her short stories are strange, compelling, mythical explorations of the scope of the human imagination and our place in the world. Also funny and thought-provoking, she ponders the liminal spaces between life/death, dreams/waking, and man/beast.
Recommended by Henrietta Weeks, contributing writer
Several Ways To Die In Mexico City by Kurt Hollander
I recently returned to this 2012 non-fiction book, touted as an “autobiography of death” in Mexico’s capital. It’s a fascinating – and somewhat unnerving – read, broken into sections with memorable titles such as “Death Valley” and “Sick City.”
Recommended by Peter Davies, chief staff writer
Instrucciones para vivir en México by Jorge Ibargüengoitia
I love Ibargüengoitia’s sense of humor: the way he talks about everyday issues with simplicity and intelligence. If you want to learn more about Mexican culture and way of thinking, this novel is for you.
Recommended by Rosario Ruiz, editor
The Lacuna by Barbara Kingsolver
Born in the U.S. but raised in a series of fantastical situations in Mexico made believable by Kingsolver’s unique skill, Harrison Shepherd’s brushes with fame and history reveal the character of both countries. He is brutally caught up in governments’ nationalist fears and the even wilder judgments of public opinion.
Recommended by Ann Marie Jackson, contributing writer
This is not Miami by Fernanda Melchor
This collection of twelve devastating short stories about life in Veracruz in the 1980s, is told with Melchor’s scintillating, honest and sharp voice. Translated brilliantly by Sophie Hughes, the book beautifully binds violence, pain and mystery together into gripping reportage stories based on real-life events in the port city.
Recommended by Gordon Cole-Schmidt, contributing writer
The Labyrinth of Solitude by Octavio Paz
Paz explores the complexities of Mexican identity and culture, delving into the historical, social, and psychological aspects that shape the people. Paz reflects on the solitude inherent in the Mexican psyche, examining the profound sense of loneliness and introspection that characterizes the nation’s history and identity.
Recommended by Mark Viales, contributing writer
A Land So Strange: The Epic Journey of Cabeza de Vaca by Andrés Reséndez
The incredible story of a Spaniard’s 4,000-km walk from Texas to Mexico City in the early 1500s. Six hundred sailed from Spain, but only four survived to tell the tale.
Recommended by John Pint, contributing writer
La Revolucioncita Mexicana by Rius
Political cartoonist Rius’ sly, humorous take on the Mexican Revolution taught me more about Mexican history than some classes I’ve taken on the subject. If you want to read in Spanish but you’re not quite ready for “A Hundred Years of Solitude,” try this graphic novel.
Recommended by Rose Egelhoff, editor
The Murmur of Bees by Sofía Segovia
An enchanting and highly evocative story that unfolds in a small town in Mexico’s northeast. The story, told with the charm of magical realism, follows the lives of Simonopio and his adoptive family, the wealthy Morales, as they navigate the tumultuous times of the Mexican Revolution.
Recommended by Gaby Solís, contributing writer
The Dope by Benjamin T. Smith
Not only is this “myth-busting” history of the drug trade in Mexico a page-turner, it is a deeply-researched reference I have returned to repeatedly since first reading it.
Recommended by Kate Bohné, chief news editor
Keep an eye out for more MND staff picks this month, including favorite films, foods and cultural experiences.
Mexico's solid economic growth in 2023 surpassed last year's forecasts. (Carlos Aranda/Unsplash)
A significant appreciation of the peso, a steady decline in inflation, Tesla’s announcement that it will build a gigafactory in Nuevo León, the cancellation of Chinese lithium concessions, record-breaking remittances, cargo delays at the Mexico-U.S. border.
It’s been an eventful year in business and economic news in Mexico, where nearshoring isn’t just a buzzword, but also represents a “historic opportunity” for the world’s 14th largest economy to secure strong growth in the years ahead and guarantee economic well-being for millions of citizens — provided the country can fully capitalize on its much-touted potential.
Major infrastructure projects like the Maya Train were one of many factors that boosted the Mexican economy in 2023. (Lopezobrador.org.mx)
At Mexico News Daily, we’ve closely followed business and economic developments this year, reporting on a wide range of data, scores of investment announcements, events that have crimped the economy and hurt investor confidence, and the views of numerous organizations and people on the country’s future prospects.
As 2023 draws to a close, here’s a look back at 10 of the biggest business and economy stories in Mexico this year. Many of the developments, events and issues outlined below had a significant impact on the economic situation in Mexico this year, and in some cases will help shape the future the country will face in the years to come.
The ‘super peso’ refuses to be beaten down
Perhaps the biggest economic story of the year has been the appreciation of the Mexican peso, which was trading at about 19.5 to the US dollar at the start of 2023 and 17.35 at the close of markets on Friday Dec. 8 — an improvement of around 12%
The peso had a strong year in 2023. (Crisanta Espinosa Aguilar/Cuartoscuro)
Analysts have cited a range of factors for the peso’s impressive run this year, including strong incoming flows of foreign capital and remittances, and the broad gap between the Bank of Mexico’s record high interest rate (11.25%) and that of the United States Federal Reserve (5.25%-5.5%).
There are a range of pros and cons to a strong peso, but President López Obrador has chosen to focus on the former, and even claimed partial credit for the currency’s appreciation this year.
“There are some disadvantages [to a strong peso], but there are more advantages,” he said at a recent press conference.
The president emphasized that a strong peso has more pros than cons for the Mexican economy. (Lopezobrador.org.mx)
“We have a percentage of public debt contracted in dollars. So, when the peso strengthens, our debt goes down,” AMLO — who has cited the government’s competent economic management as a major factor in the currency’s appreciation — said at another of his early-morning pressers.
‘Heroes’ send billions home, but exchange rate hurts remittance value
Mexicans working and living abroad sent US $52.89 billion to Mexico in remittances in the first 10 months of the year, a 9.4% increase compared to the same period of 2022.
Mexico is thus on track to beat the record set in 2022 for annual remittances receipts.
With a stronger peso, the recipients of remittances have less money to spend in Mexico, unless remitters increase the amounts they wire to offset the strengthening of the local currency. There is evidence that is occurring.
“Before I used to send $100 [per week to my family in Mexico City],” Eric Vasquez, a 44-year-old New York City restaurant employee told CNBC in October. “Now I have to send $130, $140 to cover expenses.”
While AMLO frequently describes Mexican migrants as “heroes” in recognition of the substantial support they provide to the economy — remittances were equivalent to 4.5% of GDP last year — not all the money sent to Mexico comes from hardworking people with legitimate jobs. There is evidence that some of the funds are linked to drug trafficking, a Mexican think tank reported in March.
As the peso has grown stronger, workers abroad in the U.S. have had to send home more dollars to compensate. (Shutterstock)
Inflation falls, but remains above the central bank’s target
The increase in inflation last year was probably the biggest economic story of 2022. The headline rate peaked at 8.7% in August and September of last year, and was still very high at 7.82% in December 2022.
Despite the sustained decline in inflation throughout most of the year, the headline rate remains above the Bank of Mexico’s 3% target.
Consequently, the central bank has maintained its record high 11.25% benchmark interest rate since it was raised to that level in March.
An initial cut is considered likely in the first or second quarter of 2024, provided inflation returns to the downward trend seen throughout most of 2023.
Tesla generates excitement with gigafactory announcement
Four weeks before the central bank raised its key rate to 11.25%, the world’s richest person made a significant announcement of his own.
Tesla CEO Elon Musk announced March 1 that the electric vehicle manufacturer would build a “gigafactory” in Santa Catarina, a Nuevo León municipality just west of Monterrey.
A rendering of Tesla’s proposed “gigafactory” in Nuevo León. (Tesla)
Construction has not yet begun, but Musk said in October that an initial phase of the project will begin in early 2024.
While the Austin-based company hasn’t disclosed how much it intends to invest in its new plant, estimates are in the range of US $5-10 billion.
Nuevo León Governor Samuel García claimed in September that Tesla and its suppliers would invest $15 billion in the northern border state.
Is Mexico on the verge of a nearshoring boom?
As mentioned above, Tesla is one company on a long list of foreign firms that intend to establish a presence in Mexico in the near future. During the course of 2023, many others announced that they are expanding their existing operations here.
It’s all part of the growing nearshoring phenomenon, which Mexico News Daily has covered extensively this year. (Read a couple of our analysis articles here and here.)
Unsurprisingly, foreign direct investment (FDI) is on the rise, reaching a record high of almost US $33 billion in the first nine months of 2023. FDI is poised to increase further in coming years as the significant amount of investment announced in 2023 begins to flow into the country.
While there is no shortage of people who are optimistic about Mexico’s nearshoring prospects — Governor García, for example, said in March that annual growth of 10% is possible if the opportunity is seized — few have endorsed the country as an investment destination as strongly as JPMorgan Chase CEO Jamie Dimon.
Foreign direct investment reached a record high this year, as foreign companies showed interest in setting up and expanding operations in Mexico. (Safran/Facebook)
“I think it’s one of the great opportunities. … If you had to pick a country … [Mexico] might be the number one opportunity,” he said in November.
However, some experts believe that Mexico runs the risk of missing its nearshoring opportunity, or at least not taking full advantage of it, for a variety of reasons, including government policy, security concerns and deficient infrastructure, as we reported in September.
Adding her voice to the debate, Foreign Affairs Minister Alicia Bárcena expressed doubt in November that the nearshoring opportunity is well understood in Mexico and warned that countries such as Vietnam could position themselves as more attractive options for companies that are seeking to relocate, especially from China — which is increasing its investment in Mexico itself.
Economic growth significantly higher than anticipated
The OECD predicted in November 2022 that the Mexican economy would grow by just 1.6% this year. The 38-member intergovernmental organization forecast last week that GDP will expand 3.4% in 2023.
On another positive note, Mexico was the United States’ top trade partner in the first nine months of 2023, according to U.S. government data, with two-way trade worth almost US $600 billion.
Mexico was the United States’ largest trade partner for the first 9 months of this year, according to data from the U.S. Bureau of Economic Analysis. (Juan José Estrada Serafín/Cuartoscuro)
(Read more about Mexico’s impressive export and FDI growth in recent decades here.)
Data published by the Bank of Mexico showed that economic growth in that part of the country easily exceeded growth in three other more industrialized regions of Mexico in the first half of 2023.
Supercharged by public and private construction projects, annual growth in the southern region made up of Campeche, Chiapas, Guerrero, Oaxaca, Quintana Roo, Tabasco, Veracruz and Yucatán was 6% in the second quarter of the year and 4.6% in Q1.
Projects in Mexico’s south and southeast including the Maya Train railroad, the Tulum airport and the Isthmus of Tehuantepec trade corridor all helped boost construction sector growth, which drove overall growth in the first half of the year.
President López Obrador and Quintana Roo Governor Mara Lezama view construction at the Tulum Airport, another major infrastructure project this year. (Mara Lezama/X)
President López Obrador has long asserted that the construction and operation of the Maya Train railroad — which is set to partially open next week — will spur economic development in Mexico’s long-neglected south.
There are also high hopes for the trade corridor between Salina Cruz, Oaxaca, and Coatzacoalcos, Veracruz, with Economy Minister Raquel Buenrostro saying in July that it could contribute to as much as 5% of Mexico’s GDP once operational.
The federal government’s nationalistic energy policies have been identified as one impediment to greater incoming flows of investment.
The United States and Canada challenged the policies under the USMCA in July 2022, arguing that they discriminate against U.S. and Canadian companies that operate in Mexico. More than a year later the issue has still not been resolved.
The U.S. has pressured Mexico to address its concerns, but appears reluctant to request the establishment of a dispute settlement panel to deal with the matter.
López Obrador, a fierce critic of the 2014 energy reform that opened up Mexico’s energy sector to private and foreign companies, has not indicated that he is willing to change policies that favor the state oil company Pemex and the Federal Electricity Commission.
The failure to resolve the dispute this year is significant as it perpetuates uncertainty in the energy sector, and uncertainty — as everyone knows — is never good for investment.
The U.S. and Canada have challenged current energy policy under the USMCA free trade pact, but stopped short of asking for a dispute settlement panel. (Shutterstock)
We’ll be watching closely to see how the issue plays out in 2024 — an election year in both Mexico and the U.S.
Lithium, which seems to be becoming more coveted by the day, was nationalized in Mexico last year. The initial understanding was that private companies that had already been granted concessions to mine the alkali metal would be allowed to do so, although López Obrador said in April 2022 that such contracts had to be reviewed.
Fast forward to September this year, and reports emerged that the federal government had canceled mining concessions held by Chinese company Ganfeng Lithium for a large lithium reserve in Sonora. AMLO subsequently said that the concessions were still being reviewed, but Ganfeng announced in late November that the government had confirmed the cancellation.
The CEO of a Ganfeng subsidiary that is managing the Sonora project said in October that Ganfeng would defend its right to the concessions in Mexican courts.
“We do not believe that it’s legally valid” to cancel the concessions, said Peter Secker, CEO of Bacanora Lithium.
“… We’ve exceeded all the requirements for spending on the licenses,” he said, rejecting the government’s apparent grounds for canceling the concessions.
Ganfeng Lithium has a number of lithium mines, including this one in western Australia. Whether it will be able to open a mine in Sonora remains to be seen. (Ganfeng Lithium)
The battle that appears to be looming has the potential to have a significant impact on Mexico’s nascent lithium industry. Resolution could come via a decision to enter into a joint venture to mine the Sonora reserve, in which Ganfeng and the federal government, via the state-owned lithium company Litio para México, would work together on the project.
The former has expressed its willingness to participate in such an arrangement, but the government, to date, has not.
Cargo delays at the U.S. border take heavy economic toll
Another major story we covered in 2023 was cargo delays at the northern border.
On repeated occasions this year, the Texas government ramped up inspections of northbound freight trucks at various border crossings, causing lengthy delays for truckers seeking to enter the Lone Star state.
The Economy Ministry said in May that that the inspections were causing delays of eight to 27 hours for northbound freight trucks, as well as losses in the millions of dollars for both Mexican and U.S. companies.
Cargo processing closures and increased inspections at border crossings from Mexico into the U.S. caused huge backlogs this year. (Comentario U de C/X)
The actions implemented by the Texas government “are motivated by an anti-Mexican vision that is far removed from the social, cultural and economic integration between Mexico and Texas,” the ministry said.
At one point in early October, cargo worth more than US $1.5 billion was held up at the border due to stringent inspections on the U.S. side of the crossing between Ciudad Juárez, Chihuahua, and El Paso, Texas, according to Mexico’s National Chamber of Trucking.
The stated aim of the strict inspections carried out by the Texas Department of Public Safety was to prevent the entry to the U.S. of undocumented migrants and narcotics.
Governor Greg Abbott, an outspoken critic of U.S. President Joe Biden’s alleged failure to secure the border, is well-known for his hardline stance on irregular immigration.
With migration set to be a significant issue in the upcoming presidential election in the United States, will we see more economically painful truck inspections at the Mexico-Texas border in 2024?
By Mexico News Daily chief staff writer Peter Davies ([email protected])
If you’re on a quest to understand Mexican humor – or at least to find the best Mexican memes to share with your friends – we’ve got you covered! Here’s this week’s curated collection with a translation, background, any relevance to current events, and hopefully, a good chuckle.
Meme translation: “When the game is loading and you see your reflection in the television.”
What does it meme? I don’t know about you all, but the combination of the colder weather and often sad world news has me spending a lot of time inside staring at the TV, where it’s easy to forget what you should be doing for an episode or six.
This particular meme is for people playing video games, but I see a similar image when the following episode is loading! Maybe it’s time to get up and do something!
Meme translation: “December begins.” “The fish right away:” (And yes, that’s a Bacardi bottle and a can of Modelo beer.)
What does it meme? This is a reference to a popular Christmas carol in Spanish, Los Peces en el Rio. The second part of the chorus goes, “Beben y beben y vuelven a beber; los peces en el río por ver a Dios nacer.” (In English: They drink and they drink, and they drink again; the fish in the river will soon see God as he is born.)
I’ve never really understood the song – do fish “drink” water? And how does drinking water help them see the Baby Jesus? – but it’s a popular one that most people learn as kids, and it’s sweet. Anyway! “To drink,” in Spanish, just like in English, can mean to drink alcohol, and “in the river” (en el río) can double as “by the river.” Looks like these fish have found a nice loophole in the lyrics!
Meme translation: “My ex when they tell their version of the story.”
What does it meme? I’ve hinted before in a few articles that Mexicans can fall a bit on the dramatic side when it comes to the ending of relationships: to hear people tell it, every woman is “crazy,” “lazy,” and possibly secretly abusive, and every man is a cheater and a player who only wants some kind of cross between a mother/servant and a friend with benefits.
Judging from the way my ex’s current partner refuses to look or smile at me, I’m guessing that according to him, I’m about as unstable and neglectful as they come. Alas, I might not ever know!
Meme translation: “Today we’ll be making origami with your victim paper (role).”
What does it meme? The reason this works as a joke is because of the word papel, which can mean both “paper” and “role” in Spanish. Easy enough to remember, right? So, who is this person? Why, it’s the beloved Cositas (which means “little things”), famous for teaching children crafts – like origami! – on her TV show. She was on during the times of Barney, that big purple dinosaur, and was (from what I understand – I was never a kid in Mexico) about as popular. This clever blow, coming from Señorita Cositas? Burn.
Meme translation: “I hereby inaugurate the message: ‘We need to get together before the end of the year.’”
What does it meme? If you’re a busy señora like me, you’re probably struggling to find the time to hang out with anyone not in your immediate family or work circle right now. But it’s already December, so if suddenly, you realize you haven’t seen your good friends in the past few months, now’s the time. And with so many holiday events just around the corner, surely you’ll find the time, right? Riiiiiight.
These messages have already started to arrive in my own chats with friends, with a tentative posada date of December 15th. Will we? Won’t we? So much could happen: extended work assignments, sick kids, sick us…only time will tell.
Meme translation: “What I imagine when people say ‘magical town.’”
What does it meme? Mexico’s“magical towns” has been a wildly successful government program that gears funds towards lovely smaller communities that people might not otherwise hear about, in order to showcase their charm and attract both local and international tourism. “Magical towns” is a great name if you ask me, and when I hear it, I think more about the magical realism literary style than actual magic going on there. Even so, a cow flying through the air is quality entertainment, so I had to include this one!
Meme translation: “Trees during Christmas.” “The birds in their nests.”
What does it meme? I’ve seen several versions of this meme – oddly, only in Spanish – and it cracks me up every time. In my city, we’ve got a lot of birds, and I’ll admit…we don’t often stop to ask ourselves if the lights bother them when they’re sleeping! Incidentally, a friend of mine has surely been looking exactly like this guy for the past few nights: her neighbors put up flashing Christmas lights that they never turn off, and they’re those bright LED lights that I always say should be illegal.
Why doesn’t she go and ask them to turn them off after a certain time? I asked. But alas, no one ever thinks that directly confronting someone, even kindly and openly, is a good idea around here.
Sarah DeVries is a writer and translator based in Xalapa, Veracruz. She can be reached through her website, sarahedevries.substack.com.
Jack Anderson’s Casa del So(u)l home and boutique hotel overlooking the Paquimé archeological site. (Courtesy)
A couple of years ago, I had the pleasure of meeting and interviewing Camille Turok de Flores, to get a glimpse of what it is like to be the only “gringa” in a rural community in Guanajuato. I covered her story here.
Women Surviving Rural Mexico, her Facebook group, is an important resource for its 160 or so members. Many of whom are married to people who returned to Mexico from the United States, whether voluntarily or otherwise.
And while love plays a part in many stories of foreigners living in places they might never have considered otherwise, there are some who have found their destinies off the beaten path.
For retirees like Patricia Bruton and John Davis, who are both married to Mexicans, their Mexican partners were certainly part of the equation; more importantly, though, they built lives more satisfactory than what they had back home. For Bruton, that means a charming house in Acaxochitlán, Hidalgo, with space for her many dogs, along with apple and pear trees. Unable to really “retire,” Davis and his wife busy themselves in Matanzas, Jalisco, creating businesses to help employ people in her hometown. Although Davis says they work more hours than they did in the U.S., their life now is far more satisfying than their former corporate ones.
In Casas Grandes, Chihuahua, Jack Anderson found the place to experiment with earth and adobe construction under the principles of community-minded architecture. Here he built his home and the Pueblo del Soul boutique hotel right on the border of the Paquimé archeological site, which informs much of the complex’s design. Interestingly, despite the proximity to the border and Pueblo Mágico status “I am surprised that I am the only gringo here.” Anderson says.
But perhaps the most unusual case of living on her own terms is that of Kelly Roske, who says she lives “A pretty wild and exploratory life on almost no money.” At the moment she lives in the tiny village of Singayta, Nayarit, among “little brick houses with leaky sheet metal roofs, dogs and chickens.”
Kelly Roske’s home in Nayarit. Even this is a bit too “urban” for her, looking to move further up the local mountain in the near future.
Her extremely frugal lifestyle began by raising children off a small survivors’ pension in Maui, but it became a chosen lifestyle. She has lived in various places in the U.S. and Mexico, learning to live off the land and odd jobs in order “not to be tied down.” That resourcefulness got her a gig on the Discovery Channel’s “Naked and Afraid.” Today, she is working to move out of Singayta to a more remote spot in the nearby mountains.
One curious thing is that to find your “little isolated community,” you don’t need to go all that remote. Megan L. is the only foreigner in El Moral outside of San Martín Texmelucan in Puebla, just off the highway that connects Puebla and Mexico City. Go about a half hour away even from large enclaves like Chapala or Ajijic and you can find towns where life has not changed all that much despite locals having foreigners as neighbors.
The proliferating number of Pueblos Mágicos has had one unintended effect: since being on the list means that the community is more open to outsiders, foreigners are looking at them as alternatives for living in.
Not for everyone
It would be wrong to paint living as the only foreigner in a small town as idyllic. Like everything else in life, there are trade-offs to be considered.
The first is that even with online resources, you’re still an isolated outsider – at least to some extent. That’s something that is reinforced every time you go outside to do something simple like buy bread. Learning Spanish is a must for all residents, and your social options are even more restricted without it. Even if you speak Spanish, you may deal with people with no experience hearing their language in a foreign accent and can be uncomfortable with it. Some newcomers online have expressed hurt by the Mexican tendency to call people by some physical or demographic attribute, like “güero” (white) or gringo, as doing so is taboo in many of our societies. Even with conscious knowledge that no offense is intended, not everyone make the emotional adjustment.
Kelly Roske lives a very frugal and rustic lifestyle out of choice. Her aim is to be as free as possible and most possessions get in the way of that, according to her.
There is the stereotype that rural people are more honest and friendly than their urban counterparts. However true this may or may not be, it would never be wise to blindly trust those who know the legal and cultural landscape far more than you. Joyce Barnett found this out the hard way in her small Colonia Morelos outside of San Miguel de Allende, taken advantage of by builders and even parents who send their children to a small school she set up during the pandemic. Despite this, she still admires the very poor people among whom she lives for their resourcefulness and determination.
This is one main reason why foreigners the world over form enclaves. Those who do not have a support system of foreigners make one with a select circle of locals. This is often done through marriage, but all of the respondents took some steps to involve themselves in the community in some way, to be a bit more than just the “gringo” in the neighborhood.
The advantage of Mexican support is that your people know how things work; the downside is that they may not accommodate your quirks as much as you might like. Not long after I interviewed Ellen Sharp on her work with monarch butterflies, she separated from her husband of over seven years, no longer able to navigate his family’s dynamics or the local community politics.
Younger people are moving to Mexico in greater numbers, often bringing children with them or having them here. The question of their education is usually answered with “private school.” English teacher Melissa, who lives outside of Huajuapan, Oaxaca, does not necessarily agree with this solution. In more rural areas, private schools may not be better than public ones. The answer is to be proactive in your children’s education. Homeschooling, entirely or in part, is one option along with picking and choosing from what public schools and community cultural programs have to offer.
If there is one lesson that binds all these stories – and many more – it’s that to succeed, you need to build relationships with the Mexican community surrounding you. That’s true everywhere to some extent, but it’s crucial when you’re in a culturally immersive environment. Although not everyone can live so disconnected from their home culture, those who have succeeded also noted one other thing: their experiences in their little towns have enriched their lives.
Leigh Thelmadatter arrived in Mexico over 20 years ago and fell in love with the land and the culture in particular its handcrafts and art. She is the author of Mexican Cartonería: Paper, Paste and Fiesta (Schiffer 2019). Her culture column appears regularly on Mexico News Daily.
