Economy of Mexico

Economy of Mexico

About Mexico´s economy:

Mexico is a developing country with many opportunities for improvement and making business, the economic potential of which is recognized as the number economy 11th in the world based on its gross domestic product it is huge. This fact is true if we compare Mexico to other areas where population increasing or the manufacture have stopped. The three main bases of the Mexican economy are the oil industry (petroleum), the remitted sent by migrants living abroad and tourism. It should be noted that due to the complexity of the topic, this article talks about Mexican economy just superficially.

Macroeconomic indicators:

Mexico's GDP was just over 13.4 billion pesos in 2014, and although slow, its growth has been steady (over 2%) for several years. The five states with the largest economy are Mexico City, the State of Mexico, Nuevo Leon, Jalisco and Veracruz. These five entities produce almost alone, half of the country´s income, because the main financial centers (stock exchange and central supply for example) as well as the largest populations (and airports) are housed there in addition to the principal commercial port.

Talking about the three pillars of the economy, it should be noted that the production of crude oil has declined in recent times, to the extent that the production of 2.2 million barrels per day (2015) is a typical average level of the 80´s. The fact that fuel prices have fallen recently also presents a difficult for the economy, and we can infer from this the strength of Mexico reflected in this scenario. On the other hand, based mainly on administrative reforms and technological advances, is expected to reverse the decline in production soon.

In the case of remittances, they are simply the money sent by Mexicans who have migrated and that their families and friends established in Mexico receive. Our nation is the third country that receives more revenue this way, surpassed only by India and China (2014). It should be noted that in 2015 remittances exceeded the amount of 25 billion dollars, although its share in the national GDP decreased to just under 2%.

The services sector is also important for Mexico, highlighting tourism, which has also maintained a percentage increase of just over 7% annually (except 2009). It is the tenth country to receive more international tourists and during 2014 more than 81 million foreigners visited Mexico. Income received by the concept of tourism surpassed 13,580 million dollars. This is undoubtedly due to the great attractions of the country as are its beaches, mountainous areas and more than 30 world heritage sites designated by UNESCO.

Deserve a special mention activities as the maquiladora industry, automotive and foreign investment which also make great contributions to the country´s economy. Mexico is the seventh largest producer of cars in the world, the same industry accounts for approximately 3% of annual GDP. More than 3.22 million light vehicles are produced annually in the nation. In the case of the foreign investment Mexico is the country number 15 in importance according to data from the United Nations about trade and development.

As a final indicators, I must say that the main trading partners of Mexico are the United States, followed by the People´s Republic of China. About EU, more than 80% of exports from Mexico go to that country. Mexico´s trade balance is positive as it is just over 400 billion the exports and the amount of 380 billion are the imports.

Other data:

• The daily minimum wage in Mexico is 73.06 pesos (just under $4)
• The average income of professionals in Mexico is $ 6900 per month (just over 365 dollars per month)
• Mexico has signed free trade agreements with over 45 countries and thirty-two agreements for the promotion and reciprocal protection of investments with thirty-three countries.
• Extreme poverty reaches just over 10% of the population, these people does not cover their basic needs and earn less than one dollar per day.
• More than 65% of the population receive informal income (they don´t pay state taxes, Daily el economista) and is responsible for over a quarter of GDP
• An average of 15 Mexican businessmen appear on the list of the richest people in the world each year on Forbes magazine
• The official currency is the Mexican peso, the currency of smaller value is five cents and the largest of 100 pesos. Bills extreme values are 20 pesos and one thousand pesos.
• The two main drags on the economy of Mexico are the levels of insecurity in some states and government corruption.

Articles for Economy of Mexico

Comercial Mexicana Crisis in 2008
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Mexican Oil; The Most Important Fields
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Mexico and its Exports
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Mexico's Crisis in 1994
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Mexico's Main Power Plants
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Mexico's most Important Ports
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Mexico’s Largest Companies
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Mexico’s Trade Agreements
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