Mexico is the only country in Latin America where intangible assets are growing

By Goodrich, Riquelme y Asociados

Every year, the Brand Finance Global Intangible Finance Tracker (GIFT) report tracks the value of the world’s largest companies by intangible asset value. Intangible assets are identifiable, non-monetary assets without physical substance. They can be grouped into three broad categories: rights (including leases, agreements, contracts), relationships (including a trained workforce), and intellectual property (including brands, patents, copyrights).

The GIFT 2023 edition states that the value of intangible assets owned by the world’s largest companies has risen by 8%, from USD 57.3 trillion in 2022 to USD 61.9 trillion in 2023. During the same period, the value of global tangible net assets remains stable.

Regarding Latin America, Mexico has experienced a relatively stable percentage of intangible assets since 2021, with around half of its total business value represented in intangible value. The GIFT 2023 report reveals an increase in Mexico's intangible assets, rising from 51% in 2022 to 52% in 2023.

The steady rise in 2023 reflects renewed investment in intangible assets, possibly driven by digitization and the need to compete in a global technology economy. This suggests a greater focus on innovation and a recognition of the importance of intangible assets for economic growth and competitiveness in the international market in Mexico.

The 52% of Mexico's total business value are intangible assets (+1%) compared to 43% of Brazil (-4%), 42% of Argentina (-13%) and 6% of Chile (-5%). The sectors with the highest intangible value in Mexico are Beverages, Retail and Supermarkets, and Telecommunications.

"The report reveals a steady increase in the intangible value of Mexico. This positive variation demonstrates the recognition of the importance of these assets as drivers of economic growth and competitiveness in the international market, and suggests a renewed economic strategy and a greater focus on innovation in the country," said Laurence Newell, Managing Director Americas of Brand Finance.