Mexico Economy Profile 2009

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 roughly one-third that of the US; income distribution remains highly unequal. Trade with the US and Canada has nearly 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 its 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)

$1.563 trillion (2008 est.)
$1.543 trillion (2007 est.)
$1.494 trillion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$1.088 trillion (2008 est.)

GDP - real growth rate

1.3% (2008 est.)
3.3% (2007 est.)
5.1% (2006 est.)

GDP - per capita (PPP)

$14,200 (2008 est.)
$14,200 (2007 est.)
$13,900 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 3.8%
industry: 35.2%
services: 61% (2008 est.)

Population below poverty line

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

Labor force

45.32 million (2008 est.)

Labor force - by occupation

agriculture: 15.1%
industry: 25.7%
services: 59% (2005)

Unemployment rate

4% (October 2008)
3.7% (2007 est.)
note: underemployment is perhaps 25%

Household income or consumption by percentage share

lowest 10%: 1.8%
highest 10%: 37.9% (2006)

Distribution of family income - Gini index

47.9 (2006)
53.1 (1998)

Investment (gross fixed)

22.1% of GDP (2008 est.)

Budget

revenues: $257.1 billion
expenditures: $258.1 billion (2008 est.)

Public debt

19.3% of GDP (2008 est.)
23.5% of GDP (2004 est.)

Inflation rate (consumer prices)

5.1% (2008 est.)
4% (2007 est.)

Central bank discount rate

NA% (31 December 2008)

Commercial bank prime lending rate

NA% (31 December 2008)
7.56% (31 December 2007)

Stock of money

$NA (31 December 2008)
$103.5 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$168.4 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$349.1 billion (31 December 2007)

Industries

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

Industrial production growth rate

-0.7% (2008 est.)

Electricity - production

243.3 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 78.7%
hydro: 14.2%
nuclear: 4.2%
other: 2.9% (2001)

Electricity - consumption

202 billion kWh (2007 est.)

Electricity - exports

1.278 billion kWh (2007 est.)

Electricity - imports

484.2 million kWh (2007 est.)

Oil - production

3.501 million bbl/day (2007 est.)

Oil - consumption

2.119 million bbl/day (2007 est.)

Oil - imports

385,400 bbl/day (2005)

Oil - exports

2.204 million bbl/day (2005)

Oil - proved reserves

13.68 billion bbl (1 January 2008 est.)

Natural gas - production

55.98 billion cu m (2007 est.)

Natural gas - consumption

68.29 billion cu m (2007 est.)

Natural gas - exports

2.973 billion cu m (2007 est.)

Natural gas - imports

11.69 billion cu m (2007 est.)

Natural gas - proved reserves

392.2 billion cu m (1 January 2008 est.)

Current Account Balance

-$15.72 billion (2008 est.)
-$8.331 billion (2007 est.)

Agriculture - products

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

Exports

$291.3 billion (2008 est.)
$271.9 billion (2007 est.)

Exports - commodities

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

Exports - partners

US 73.1%, Canada 6.2%, Germany 1.9% (2008)

Imports

$308.6 billion (2008 est.)
$281.9 billion (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 55%, China 7.1%, South Korea 5.2% (2008)

Reserves of foreign exchange and gold

$95.3 billion (31 December 2008 est.)
$87.19 billion (31 December 2007 est.)

Debt - external

$200.4 billion (31 December 2008)
$193.1 billion (31 December 2007)

Stock of direct foreign investment - at home

$289.8 billion (31 December 2008 est.)
$267.8 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$46.7 billion (31 December 2008 est.)
$44.7 billion (31 December 2007 est.)

Market value of publicly traded shares

$232.6 billion (31 December 2008)
$397.7 billion (31 December 2007)
$348.3 billion (31 December 2006)

Economic aid - recipient

$189.4 million (2005)

Currency (code)

MXN

Currency (code)

Mexican peso (MXN)

Exchange rates

Mexican pesos (MXN) per US dollar - 11.016 (2008 est.), 10.8 (2007), 10.899 (2006), 10.898 (2005), 11.286 (2004)

Fiscal year

calendar year