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The Economy of Mexico

Mexican Economy

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Economy - overview: Mexico has a free market economy in the trillion dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is one-fourth that of the US; income distribution remains highly unequal. Trade with the US and Canada has nearly tripled since the implementation of NAFTA in 1994. Mexico has 12 free trade agreements with over 40 countries including, Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan, putting more than 90% of trade under free trade agreements. In 2007, during its first year in office, the Felipe CALDERON administration was able to garner support from the opposition to successfully pass a pension and a fiscal reform. The administration continues to face many economic challenges including the need to upgrade infrastructure, modernize labor laws, and allow private investment in the energy sector. CALDERON has stated that his top economic priorities remain reducing poverty and creating jobs.

GDP:

GDP - real growth rate: 1.4% (2008 est.) 3.2% (2007 est.) 4.9% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 3.7% industry: 34.1% services: 62.2% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 1.2% highest 10%: 37% (2006)

Distribution of family income - Gini index: 47.9 (2006)

Inflation rate (consumer prices):

Labor force: 45.5 million (2008 est.)

Labor force - by occupation: agriculture: 15.1% industry: 25.7% services: 59% (2005)

Unemployment rate: 4.1% plus underemployment of perhaps 25% (October 2008)

Budget: revenues: $256.7 billion expenditures: $256.8 billion (2008 est.)

Industries: food and beverages, tobacco, chemicals, iron and steel, petroleum, mining, textiles, clothing, motor vehicles, consumer durables, tourism

Industrial production growth rate: 0% (2008 est.)

Electricity - production: 243.3 billion kWh (2007 est.)

Electricity - production by source:

Electricity - consumption: 202 billion kWh (2007 est.)

Electricity - exports: 1.278 billion kWh (2007 est.)

Electricity - imports: 484.2 million kWh (2007 est.)

Oil - production: 3.501 million bbl/day (2007 est.)

Oil - consumption: 2.119 million bbl/day (2007 est.)

Oil - exports: 2.204 million bbl/day (2005)

Oil - imports: 385,400 bbl/day (2005)

Oil - proved reserves: 11.65 billion bbl (1 January 2008 est.)

Natural gas - production: 55.98 billion cu m (2007 est.)

Natural gas - consumption: 68.29 billion cu m (2007 est.)

Natural gas - exports: 2.973 billion cu m (2007 est.)

Natural gas - imports: 11.69 billion cu m (2007 est.)

Natural gas - proved reserves: 392.2 billion cu m (1 January 2008 est.)

Agriculture - products: corn, wheat, soybeans, rice, beans, cotton, coffee, fruit, tomatoes; beef, poultry, dairy products; wood products

Exports: $294 billion f.o.b. (2008 est.)

Exports - commodities: manufactured goods, oil and oil products, silver, fruits, vegetables, coffee, cotton

Exports - partners: US 82.2%, Canada 2.4%, Germany 1.5% (2007)

Imports: $305.9 billion f.o.b. (2008 est.)

Imports - commodities: metalworking machines, steel mill products, agricultural machinery, electrical equipment, car parts for assembly, repair parts for motor vehicles, aircraft, and aircraft parts

Imports - partners: US 49.6%, China 10.5%, Japan 5.8%, South Korea 4.5% (2007)

Debt - external: $181.2 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Mexican pesos (MXN) per US dollar - 11.016 (2008 est.), 10.8 (2007), 10.899 (2006), 10.898 (2005), 11.286 (2004)

Fiscal year: