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flag Mexico Mexico: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

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 2009201020112012 (e)2013 (e)
GDP (billions USD) 879.161,034.311,185.21e1,242.221,305.33
GDP (Constant Prices, Annual % Change) -6.25.4e3.8e3.63.7
GDP per Capita (USD) 8,1749,522e10,80311,21011,663
General Government Gross Debt (in % of GDP) 44.742.942.943.643.5
Inflation Rate (%) 5.34.23.4e3.13.0
Unemployment Rate (% of the Labor Force) 5.55.44.53.93.5
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

Main Sectors of Industry

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 20062007200820092010
Mexican Peso (MXN) - Average Annual Exchange Rate For 1 USD 10.9010.9311.1313.5112.64

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Mexico on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
67.8/100
Position:
Moderately free
World Rank:
44/179
Regional Rank:
3/3

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

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 20062007200820092010
Imports of Goods (million USD) 263,476290,246318,304241,515310,618
Exports of Goods (million USD) 249,961271,821291,265229,712298,361
Imports of Services (million USD) 22,32923,22825,00121,40223,056
Exports of Services (million USD) 16,37217,59818,47415,42016,178
Imports of Goods and Services (Annual % Change) 12.67.12.8-18.218.5
Exports of Goods and Services (Annual % Change) 10.95.70.5-14.824.9
Imports of Goods and Services (in % of GDP) 29.229.530.229.030.9
Exports of Goods and Services (in % of GDP) 28.027.928.027.629.8
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) 57.257.458.256.660.7

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

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

 

Main Products

Main Exports
(% of Exports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 12.0%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 7.7%
Television receivers, whether or not incorporating...Television receivers, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus; video monitors and video projectors 6.8%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 4.6%
Automatic data processing machines and units...Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s. 4.6%
See More Products 64.2%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 6.1%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 4.9%
Parts suitable for use solely or principally with...Parts suitable for use solely or principally with transmission and reception apparatus for radio-telephony, radio-telegraphy, radio-broadcasting, television, television cameras, still image video cameras and other video camera recorders, radar apparatus, radio navigational aid apparatus or radio remote control apparatus, n.e.s. 3.8%
Electronic integrated circuits and microassembliesElectronic integrated circuits and microassemblies 3.6%
Electrical apparatus for line telephony or line...Electrical apparatus for line telephony or line telegraphy, incl. line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones; parts thereof 2.6%
See More Products 79.0%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of the Economy
Ministry of Social Development
Ministry of Finance
Ministry of Energy
Statistical Office
National Institute of Statistics and Geography
Central Bank
Bank of Mexico
Stock Exchange
Mexican Stock Exchange
Search Engines
Yahoo Mexico
Buscador
Explora Mexico
Mexico Channel
Mexico Global
Mexico Online
Mexico Web
Mexsearch
Mxsearch
Sbel
Economic Portals
Trade in Mexico

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Political Outline

Executive Power
As established by the Constitution, the Executive power is headed by the President of the United Mexican States.
The President is both head of state and head of government.  He is Supreme Commander of the Army Force.
The President is elected by popular vote and cannot be reelected. The presidential term lasts six years.
Legislative Power
The Mexican legislative power is in the hands of the General Congress  which is divided in two chambers: the Deputies and the Senators.
The Chamber of Deputies has 500 members, from which 300 are elected according to the principle of plurality. The remaining 200 are elected through the rule of proportional representation.
The Chamber of Senators applies in the same manner the principle of proportional representation by integration, electing 32 of its 96 members every two years.
Main Political Parties
Mexico has a multi-party system. There are three major political parties in the country:
- PAN (National Action Party) – a conservative liberal party, to which the actual President of the Republic belongs.
- PRI (Institutional Revolutionary Party) - the oldest political party in the country, it governed for 70 years, it is the center or middle party.
- PRD (Party of the Democratic Revolution)- a left wing socialist party.
Current Political Leaders
President : Felipe Calderón Hinojosa elected on July 2, 2006, member of  PAN
Next Election Dates
Presidential: July 2012
Senate: July 2012
Chamber of Deputies: 2012
 

Indicator of Freedom of the Press

World Rank:
136/178
Evolution:
2 places up compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
2/7
Civil Liberties:
3/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012