Mexico Economy Profile 2008

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 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 his 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 (purchasing power parity)

$1.353 trillion (2007 est.)

GDP (official exchange rate)

$886.4 billion (2007 est.)

GDP - real growth rate

3% (2007 est.)

GDP - per capita (PPP)

$12,500 (2007 est.)

GDP - composition by sector

agriculture: 3.9%
industry: 26.3%
services: 69.9% (2007 est.)

Population below poverty line

13.8% using food-based definition of poverty; asset based poverty amounted to more than 40% (2006)

Household income or consumption by percentage share

lowest 10%: 1.2%
highest 10%: 37% (2006)

Inflation rate (consumer prices)

3.8% (2007)

Investment (gross fixed)

21.5% of GDP (2007 est.)

Labor force

45.38 million (2007 est.)

Labor force - by occupation

agriculture: 18%
industry: 24%
services: 58% (2003)

Unemployment rate

3.7% plus underemployment of perhaps 25% (2007 est.)

Distribution of family income - Gini index

50.9 (2005)

Budget

revenues: $209.2 billion
expenditures: $209.2 billion (2007 est.)

Public debt

23.1% of GDP (2007 est.)

Industries

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

Industrial production growth rate

1.2% (2007 est.)

Electricity - production

222.4 billion kWh (2005)

Electricity - consumption

183.3 billion kWh (2005)

Electricity - exports

1.597 billion kWh (2005)

Electricity - imports

470.7 million kWh (2005)

Oil - production

3.784 million bbl/day (2005 est.)

Oil - consumption

2.078 million bbl/day (2005 est.)

Oil - imports

308,500 bbl/day (2004)

Oil - exports

2.268 million bbl/day (2004)

Oil - proved reserves

12.88 billion bbl (1 January 2006 est.)

Natural gas - production

41.37 billion cu m (2005 est.)

Natural gas - consumption

47.5 billion cu m (2005 est.)

Natural gas - exports

282.9 million cu m (2005 est.)

Natural gas - imports

9.717 billion cu m (2005)

Natural gas - proved reserves

434.1 billion cu m (1 January 2006 est.)

Current Account Balance

-$5.414 billion (2007 est.)

Agriculture - products

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

Exports

$267.5 billion f.o.b. (2007 est.)

Exports - commodities

manufactured goods, oil and oil products, silver, fruits, vegetables, coffee, cotton

Exports - partners

US 84.7%, Canada 2.1%, Spain 1.3% (2006)

Imports

$279.3 billion f.o.b. (2007 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 50.9%, China 9.5%, Japan 6%, South Korea 4.2% (2006)

Reserves of foreign exchange and gold

$85.11 billion (31 December 2007 est.)

Debt - external

$182 billion (30 June 2007)

Stock of direct foreign investment - at home

$236.2 billion (2006 est.)

Stock of direct foreign investment - abroad

$30.75 billion (2006 est.)

Market value of publicly traded shares

$348.3 billion (2006)

Economic aid - recipient

$189.4 million (2005)

Currency (code)

Mexican peso (MXN)

Exchange rates

Mexican pesos per US dollar - 10.8 (2007), 10.899 (2006), 10.898 (2005), 11.286 (2004), 10.789 (2003)

Fiscal year

calendar year