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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

The Mexican economy showed a reduced growth rate in 2008 and even a negative rate in 2009. GDP growth should become positive again during 2010. The rise in international oil prices could contribute to the revival of the economy. Unemployment has increased in the last two years whereas inflation has remained relatively under control.

Nevertheless the general economic prospects are worrying. The anti-crisis mesures developed by Calderón's government are not discernable to the whole of the population. Additionally, the country's growing security issues discourage investments and tourism. In the near future, we are expecting more devaluations of the currency due as much to the reduction in foreign exchage income as to the constant capital flight.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	952.34	1,025.43e	1,088.13	827.19e	863.36e
GDP (constant prices, annual % change)	5.1	3.3e	1.3e	-3.7e	1.0e
GDP per capita (USD)	9,138	9,742e	10,235	7,703e	7,961
Inflation rate (%)	3.6	4.0	5.1e	4.8	3.4e
Unemployment rate (% of the labor force)	3.6	3.7	4.0	-	-
Current Account (billions USD)	-4.38	-8.17	-15.53e	-20.84	-18.77
Current Account (in % of GDP)	-0.5	-0.8	-1.4e	-2.5	-2.2

Source: IMF - World Economic Outlook Database ; OECD - Economic Outlook n°84

Note: (e) Estimated data

Main sectors of industry

Agriculture accounts for approximately 4% of the GDP and employs nearly 16% 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 and oranges. Mexico 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 5^th biggest producer of oil. Cattle farming and fishing are also important economic activities.

The free trade zones dedicated to exports to the United States, the "Maquiladoras", which up to now used to energize the Mexican economy, are currently suffering from a crisis caused by competition from Asian countries and the American economy recession. Consequently, the manufacturing sector has markedly slowed down in these recent years and currently contributes around a quarter of the country's GDP.

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)	15.1	25.7	58.6
Value added (in % of GDP)	3.7	35.9	60.3
Value added (annual % change)	2.1	1.9	3.9

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Mexican Peso (MXN) - Average annual exchange rate for 1 USD	11.29	10.90	10.90	10.93	11.13

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 65.8/100
Position:: moderately free
World Rank:: 49 out of 179
Regional Rank:: 3 out of 3

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Mexico is one of the countries that most depends on foreign trade. Foreign trade represents around 70% of its GDP. Mexico 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.

Mainly because of the decrease of Mexican product purchases by the United States, the Mexican trade balance has been in deficit since 2008. This is another one of the chronic structural problems of the mexican economy, as the country imports more than it exports and the trend increased with the world crisis, especially in the oil sector. The devaluation of the Mexican peso in October 2008, which in theory made Mexican exports more attractive did not stabilize the growing trade balance deficit.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	170,546	196,810	221,820	256,059	281,949
Exports of goods (millions USD)	164,766	187,999	214,233	249,925	271,875
Imports of services (millions USD)	18,141	19,779	21,440	22,833	23,826
Exports of services (millions USD)	12,617	14,047	16,137	16,392	17,736
Imports of goods and services (annual % change)	0.7	10.7	8.5	12.8	7.0
Exports of goods and services (annual % change)	2.7	11.5	6.8	10.8	6.2
Imports of goods and services (in % of GDP)	26.8	28.4	28.6	29.4	29.9
Exports of goods and services (in % of GDP)	25.4	26.6	27.2	28.1	28.3
Trade Balance (millions USD)	-5,780	-8,811	-7,587	-6,133	-10,074
Trade Balance (including service) (millions USD)	-11,304	-14,543	-12,890	-12,574	-16,164
Foreign trade (in % of GDP)	52.2	55.0	55.8	57.5	58.2

Source: World Bank

Main partner countries

Main customers (% of exports)	2007
United States	82.2%
Canada	2.4%
Germany	1.5%
Spain	1.4%
Colombia	1.1%
Venezuela	0.9%
Brazil	0.7%
Japan	0.7%
Netherlands	0.7%
China	0.7%
United Kingdom	0.6%
Aruba	0.6%
Chile	0.4%
Guatemala	0.4%
Argentina	0.4%
India	0.4%
Belgium	0.3%
Dominican Republic	0.3%
Panama	0.3%
Nicaragua	0.3%
See more countries	11.5%

Main suppliers (% of imports)	2007
United States	49.6%
China	10.6%
Japan	5.8%
South Korea	4.5%
Germany	3.8%
Canada	2.8%
Brazil	2.0%
Italy	2.0%
Malaysia	1.7%
Spain	1.4%
France	1.1%
Chile	0.9%
Netherlands	0.9%
United Kingdom	0.8%
Thailand	0.7%
Singapore	0.7%
Argentina	0.6%
Switzerland	0.5%
India	0.4%
Philippines	0.4%
See more countries	25.8%

Source: Comtrade

Main products

Main exports (% of exports)	2007
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	25.8%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	15.7%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	15.4%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	12.5%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	3.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	2.1%
Plastics and articles thereofPlastics and articles thereof	2.0%
Articles of iron or steelArticles of iron or steel	1.5%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	1.4%
Iron and steelIron and steel	1.3%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	1.3%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.1%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.1%
Copper and articles thereofCopper and articles thereof	0.9%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.8%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.8%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.7%
Organic chemicalsOrganic chemicals	0.7%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.6%
Rubber and articles thereofRubber and articles thereof	0.5%
Ores, slag and ashOres, slag and ash	0.5%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.5%
Glass and glasswareGlass and glassware	0.5%
Pharmaceutical productsPharmaceutical products	0.5%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.5%
Aluminium and articles thereofAluminium and articles thereof	0.5%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.4%
Ceramic productsCeramic products	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Zinc and articles thereofZinc and articles thereof	0.3%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.3%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.3%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.3%
Miscellaneous chemical productsMiscellaneous chemical products	0.3%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.3%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.2%
Sugars and sugar confectionerySugars and sugar confectionery	0.2%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.2%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.2%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.2%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.2%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.2%
Live animalsLive animals	0.2%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.2%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.2%
Meat and edible meat offalMeat and edible meat offal	0.2%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.2%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.1%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.1%
Man-made filamentsMan-made filaments	0.1%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.1%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.1%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.1%
See more products	27.4%

Main imports (% of imports)	2007
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	21.2%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	15.1%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	9.5%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	6.9%
Plastics and articles thereofPlastics and articles thereof	5.7%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	4.5%
Organic chemicalsOrganic chemicals	2.5%
Iron and steelIron and steel	2.4%
Articles of iron or steelArticles of iron or steel	2.4%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.7%
Aluminium and articles thereofAluminium and articles thereof	1.5%
Rubber and articles thereofRubber and articles thereof	1.4%
Pharmaceutical productsPharmaceutical products	1.2%
CerealsCereals	1.1%
Miscellaneous chemical productsMiscellaneous chemical products	1.1%
Copper and articles thereofCopper and articles thereof	1.1%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	1.0%
Meat and edible meat offalMeat and edible meat offal	1.0%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.9%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.8%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.7%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.6%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.5%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.5%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.5%
Glass and glasswareGlass and glassware	0.5%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.4%
Ores, slag and ashOres, slag and ash	0.4%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.4%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.4%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.4%
FertilizersFertilizers	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
CottonCotton	0.4%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.4%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.4%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.4%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.4%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.3%
Man-made filamentsMan-made filaments	0.3%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.3%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.3%
Man-made staple fibresMan-made staple fibres	0.3%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.3%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.3%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.3%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.3%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.3%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Ceramic productsCeramic products	0.2%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.2%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.2%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
Sugars and sugar confectionerySugars and sugar confectionery	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.2%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.2%
Special woven fabrics; tufted textile fabrics;...Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery	0.2%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.1%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.1%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.1%
Nickel and articles thereofNickel and articles thereof	0.1%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.1%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.1%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.1%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.1%
See more products	41.6%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

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

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: July 2009

Indicator of freedom of the press

World Rank:: 140/173
Evolution:: 4 places down compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 2/7
Civil liberties:: 2/7

Map of freedom 2007
Source: Freedom House

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