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Mexico Economy Profile 2017

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Economy - overviewMexico's $2.2 trillion economy has become increasingly oriented toward manufacturing since the North American Free Trade Agreement (NAFTA) entered into force in 1994. Per capita income is roughly one-third that of the US; income distribution remains highly unequal.

Mexico has become the US' second-largest export market and third-largest source of imports. In 2016, two-way trade in goods and services exceeded $579 billion. Mexico has free trade agreements with 46 countries, putting more than 90% of trade under free trade agreements. In 2012, Mexico formed the Pacific Alliance with Peru, Colombia, and Chile.

Mexico's current government, led by President Enrique PENA NIETO, has emphasized economic reforms, passing and implementing sweeping energy, financial, fiscal, and telecommunications reform legislation, among others, with the long-term aim to improve competitiveness and economic growth across the Mexican economy. Mexico began holding public auctions of exploration and development rights to select oil and gas resources in 2015 as a part of reforms that allow for private investment in the oil, gas, and electricity sectors. Mexico held its fourth auction in December 2016 and allocated 8 of 10 deep water fields, demonstrating Mexico’s capacity to attract investment amid low oil prices. The government will allocate additional fields in 2017.

Since 2013, Mexico’s economic growth has averaged 2% annually, falling short of private-sector expectations that President Pena Nieto’s sweeping reforms would bolster economic prospects. Growth is predicted to remain below potential given falling oil production, weak oil prices, structural issues such as low productivity, high inequality, a large informal sector employing over half of the workforce, weak rule of law, and corruption. Over the medium-term, the economy is vulnerable to global economic pressures, such as lower external demand, rising interest rates, and low oil prices - approximately 10% of government revenue comes from the state-owned oil company, PEMEX.
GDP (purchasing power parity)$2.307 trillion (2016 est.)
$2.259 trillion (2015 est.)
$2.205 trillion (2014 est.)
note: data are in 2016 dollars
GDP (official exchange rate)$1.064 trillion (2016 est.)
GDP - real growth rate2.1% (2016 est.)
2.5% (2015 est.)
2.2% (2014 est.)
GDP - per capita (PPP)$18,900 (2016 est.)
$18,700 (2015 est.)
$18,400 (2014 est.)
note: data are in 2016 dollars
Gross national saving20.3% of GDP (2016 est.)
19.9% of GDP (2015 est.)
19.5% of GDP (2014 est.)
GDP - composition, by end usehousehold consumption: 69.6%
government consumption: 12.3%
investment in fixed capital: 22.6%
investment in inventories: -1.8%
exports of goods and services: 36.1%
imports of goods and services: -38.8% (2016 est.)
GDP - composition by sectoragriculture: 3.7%
industry: 33.1%
services: 63.2% (2016 est.)
Population below poverty line46.2%
note: based on food-based definition of poverty; asset-based poverty amounted to more than 47% (2014 est.)
Labor force53.74 million (2016 est.)
Labor force - by occupationagriculture: 13.4%
industry: 24.1%
services: 61.9% (2011)
Unemployment rate3.6% (2017 est.)
4.4% (2015 est.)
note: underemployment may be as high as 25%
Unemployment, youth ages 15-24total: 9.6%
male: 9.2%
female: 10.3% (2014 est.)
Household income or consumption by percentage sharelowest 10%: 2%
highest 10%: 40% (2014)
Distribution of family income - Gini index48.2 (2014)
48.3 (2008)
Budgetrevenues: $224.3 billion
expenditures: $255.9 billion (2016 est.)
Taxes and other revenues21.1% of GDP (2016 est.)
Budget surplus (+) or deficit (-)-3% of GDP (2016 est.)
Public debt56.3% of GDP (2016 est.)
54.1% of GDP (2015 est.)
Inflation rate (consumer prices)2.8% (2016 est.)
2.7% (2015 est.)
Central bank discount rate6.25% (28 February 2017)
5.25% (28 February 2016)
Commercial bank prime lending rate4.3% (31 December 2016 est.)
3.42% (31 December 2015 est.)
Stock of narrow money$192.3 billion (31 December 2016 est.)
$194.8 billion (31 December 2015 est.)
Stock of broad money$826.7 billion (31 December 2014 est.)
$727 billion (31 December 2013 est.)
Stock of domestic credit$400.3 billion (31 December 2016 est.)
$398.9 billion (31 December 2015 est.)
Market value of publicly traded shares$402.3 billion (31 December 2015 est.)
$480.2 billion (31 December 2014 est.)
$526 billion (31 December 2013 est.)
Agriculture - productscorn, wheat, soybeans, rice, beans, cotton, coffee, fruit, tomatoes; beef, poultry, dairy products; wood products
Industriesfood and beverages, tobacco, chemicals, iron and steel, petroleum, mining, textiles, clothing, motor vehicles, consumer durables, tourism
Industrial production growth rate3.3% (2016 est.)
Current Account Balance-$27.86 billion (2016 est.)
-$33.35 billion (2015 est.)
Exports$373.7 billion (2016 est.)
$380.9 billion (2015 est.)
Exports - commoditiesmanufactured goods, oil and oil products, silver, fruits, vegetables, coffee, cotton
Exports - partnersUS 81.2% (2015)
Imports$387 billion (2016 est.)
$395.3 billion (2015 est.)
Imports - commoditiesmetalworking machines, steel mill products, agricultural machinery, electrical equipment, automobile parts for assembly and repair, aircraft, aircraft parts
Imports - partnersUS 47.3%, China 17.7%, Japan 4.4% (2015)
Reserves of foreign exchange and gold$176.4 billion (31 December 2016 est.)
$178 billion (31 December 2015 est.)
note: Mexico also maintains access to an $88 million Flexible Credit Line with the IMF
Debt - external$484.6 billion (31 December 2016 est.)
$441.6 billion (31 December 2015 est.)
Stock of direct foreign investment - at home$384.3 billion (31 December 2016 est.)
$356.9 billion (31 December 2015 est.)
Stock of direct foreign investment - abroad$153.3 billion (31 December 2016 est.)
$142.9 billion (31 December 2015 est.)
Exchange ratesMexican pesos (MXN) per US dollar -
18.34 (2016 est.)
15.848 (2015 est.)
15.848 (2014 est.)
13.292 (2013 est.)
13.17 (2012 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on July 9, 2017

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