Mexico: Economic and Political Outline
Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline
Mexico became the 12th world economic power. Although the GDP fell sharply in 2009 (-6.5%), the GDP is predicted to rise by about 4% in 2010. Resumption of exports, especially car sales and US tourism are encouraging signs. The general economic outlook is relatively good. According to the different rating agencies, Mexico enjoys the “investment grade” status. The Doing Business 2010 report considers it the best country to do business in in Latin America; nevertheless, the growing security issues discourage investments and tourism. The corruption and inefficiency of Mexican bureaucracy are also among the country’s weaknesses
| Main Indicators | 2009 | 2010 | 2011 | 2012 (e) | 2013 (e) |
| GDP (billions USD) | 879.16 | 1,034.31 | 1,185.21e | 1,242.22 | 1,305.33 |
| GDP (Constant Prices, Annual % Change) | -6.2 | 5.4e | 3.8e | 3.6 | 3.7 |
| GDP per Capita (USD) | 8,174 | 9,522e | 10,803 | 11,210 | 11,663 |
| General Government Gross Debt (in % of GDP) | 44.7 | 42.9 | 42.9 | 43.6 | 43.5 |
| Inflation Rate (%) | 5.3 | 4.2 | 3.4e | 3.1 | 3.0 |
| Unemployment Rate (% of the Labor Force) | 5.5 | 5.4 | 4.5 | 3.9 | 3.5 |
| Current Account (billions USD) | -6.35 | -5.63e | -11.27e | -10.86 | -11.55 |
| Current Account (in % of GDP) | -0.7 | -0.5 | -1.0 | -0.9 | - |
Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data
Note: (e) Estimated Data
Agriculture accounts for approximately 4% of the GDP and employs 13.5% of the active population, however, the scarcity of credit continues to penalize this sector. Mexico ranks amongst the world's largest producers of coffee, sugar, corn, oranges, avocadoes and limes. Mexico is the world's 5th biggest producer of beer and its number two exporter. It is amongst the world's leading producers of many minerals, including silver, fluorite, zinc and mercury, and its oil and gas reserves are one of its most precious possessions: Mexico is the world’s fifth largest producer of oil. The oil company PEMEX is the second most powerful company in Latin America, according to the industry journal América Economía. Cattle farming and fishing are also important economic activities.
The aerospace sector has grown sharply in the last five years, due to the presences of almost 190 companies, such as Bombardier, Goodrich, the Safran group and Honeywell, which together employ 30 000 people. Mexico is also one of the 10th major car producers. The hi-tech, information and software development sectors are also experiencing a real momentum, driven by the quality of the workforce, clusters and low operating costs, which allow for the establishment of call centers.
The tertiary sector contributes to around 60% of the GDP and the construction sector is coming up again due to real estate investments.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
| Employment By Sector (in % of Total Employment) | 13.3 | 23.9 | 62.1 |
| Value Added (in % of GDP) | 4.1 | 34.8 | 61.1 |
| Value Added (Annual % Change) | 1.0 | 5.0 | 5.5 |
Source: World Bank - Last Available Data.
| Monetary Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| Mexican Peso (MXN) - Average Annual Exchange Rate For 1 USD | 10.90 | 10.93 | 11.13 | 13.51 | 12.64 |
Source: World Bank - Last Available Data.
Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation
See the Country Risk Analysis Provided By Ducroire.
Mexico is one of the countries that most depends on foreign trade. Foreign trade represents around 60% of its GDP. Mexico has 11 free-trade agreements with 43 countries of the world. It is a member of NAFTA - the free-trade agreement that unifies the United States, Mexico and Canada, since 1994. The country signed a free trade agreement with the European Union in 2000 and a commercial agreement with Japan came into force in April 2005.
The United States buys 80% of Mexico's exports. Its main export partners are the NAFTA and the European Union. The main export goods are electrical and electronic equipment, vehicles, mineral fuels, oil and machinery. Its three main import partners are the NAFTA, China and Japan. It mainly imports electrical and electronics equipment, machinery, vehicles and plastic products.
In 2010, Mexican exports increased by 32% on the previous year. During the same period, internation car sales increased sharply by 76.8%, which may also represent a threat of dependency for the Mexican economy.
| Foreign Trade Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| Imports of Goods (million USD) | 263,476 | 290,246 | 318,304 | 241,515 | 310,618 |
| Exports of Goods (million USD) | 249,961 | 271,821 | 291,265 | 229,712 | 298,361 |
| Imports of Services (million USD) | 22,329 | 23,228 | 25,001 | 21,402 | 23,056 |
| Exports of Services (million USD) | 16,372 | 17,598 | 18,474 | 15,420 | 16,178 |
| Imports of Goods and Services (Annual % Change) | 12.6 | 7.1 | 2.8 | -18.2 | 18.5 |
| Exports of Goods and Services (Annual % Change) | 10.9 | 5.7 | 0.5 | -14.8 | 24.9 |
| Imports of Goods and Services (in % of GDP) | 29.2 | 29.5 | 30.2 | 29.0 | 30.9 |
| Exports of Goods and Services (in % of GDP) | 28.0 | 27.9 | 28.0 | 27.6 | 29.8 |
| Trade Balance (million USD) | -6,133 | -10,074 | -17,261 | -4,681 | -3,009 |
| Trade Balance (Including Service) (million USD) | -12,574 | -16,529 | -24,316 | -12,850 | -13,168 |
| Foreign Trade (in % of GDP) | 57.2 | 57.4 | 58.2 | 56.6 | 60.7 |
Source: WTO - World Trade Organization ; World Bank , Last Available Data
| Main Customers (% of Exports) |
2010 |
| United States | 80.1% |
| Canada | 3.6% |
| China | 1.4% |
| Spain | 1.3% |
| Brazil | 1.3% |
| See More Countries | 12.4% |
| Main Suppliers (% of Imports) |
2010 |
| United States | 48.2% |
| China | 15.1% |
| Japan | 5.0% |
| South Korea | 4.2% |
| Germany | 3.7% |
| See More Countries | 23.7% |
Source: Comtrade, Last Available Data
Source: Comtrade, Last Available Data
Source: Worldwide Press Freedom Index 2010, Reporters Without Borders
Map of freedom 2010
Source: Freedom House
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Last Updates: January 2012