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Home > About Mexico > Economy of Mexico

Economy of Mexico

Mexico is a developing country with an economy based on the extraction of crude oil, the transfer of funds from the Mexican emigrants working abroad, tourism, and intensive industrial, mining and agricultural activities.

For many years, oil has been the main source of income for the public sector;
nevertheless, world prices and the lack of investment in search of new oil fields turn this natural resource into an issue that will affect the health of the economy in the years to come.

On the other hand, the funds transferred to their families by the labor force that migrates north into the United States have become an income of the outmost importance within the Mexican economy.

The services sector, tourism in particular, is another major contributor in the Mexican gross national product. The country offers as much as 26 places considered natural or cultural heritage of the world, and has also dedicated much time and effort in developing various specialized areas of tourism, such as bird-watching, extreme sports or culinary trips.

Industry is one the most important activities in the country, and it employs a fourth of the economically active population; automobiles, cement, steel, textiles, chemicals and drinks are some of the major activities within the Mexican industry.

Mining represents another important field of economical activity, silver in particular as
Mexico is the biggest world producer of this precious metal. Regarding the agricultural
sector, corn and beans, the base of Mexican diet, represent the two products with the largest crops, followed by coffee, potato, tomato, plantain, sorghum and sugar cane.

Mexico is the country that has signed the most international trade agreements globally, but the United States of America is still its major import- exportassociate. Mexican main exports are crude oil, machinery, textiles, coffee and chemical products.

Despite the fact that the country's economical expansion has held a steady rhythm in the last few years, this has not been enough to improve competitiveness and reduce poverty, both in urban and rural areas. According to the World Bank, $7,310 dollars was the average annual income per person in Mexico at the end of 2006. The local currency is the Mexican Peso.

Economic Models in Mexico's History
The three most representative economic models in Mexico’s history are the following:

Electricity Generation In Mexico
Article 27 of the Constitution recognizes the exclusive right of the State to generate electric energy for public service. This principle governing energy issues and
Hydroelectric Centrals in Mexico
Hydroelectric centrals take the energy from the natural water flow on a natural slope called geodesic curve, where an engine transmits

Mexican Agriculture
Agriculture is still one of the most important activities for world economy; the primary nutrition of millions of persons depends on it.

Mexican Currency Devaluation of 2009
In February 2009, the exchange rate reached 15 pesos per dollar, an unprecedented loss in the value of Mexican currency.
Mexican Oil; The Most Important Fields
Mexico is the sixth largest oil producer in the world and the tenth in terms of net exports in 2007. The main oil and natural gas fields in

Mexican Stock Exchange
The Stock Exchange of any part of the world responds to the financial system with the main goal of transferring resources from investors to

Mexican Unions
Mexican syndicalism originated during the first decades of the XX century, when the revolutionary struggle ultimately established the

Mexico's Crisis in 1994
The interpretation of the crisis lived by Mexico in 1994 has various sides. The first implies reviewing the economic stances established

Mexico's Main Power Plants
Comisión Federal de Electricidad (CFE) is the State’s enterprise in charge of generating, transmitting, distributing and commercializing
Mexico's most Important Ports
Mexico has a great economic activity for which it has developed an important port infrastructure. Even though each of the country’s

Mexico’s Largest Companies
Business activity in Mexico has been a fundamental base in the country’s economic development. During crucial moments of Mexican

Mexico’s Trade Agreements
In Europe, on the 24 of November 1999, the technical negotiations where formally concluded for the Free Trade Agreement between Mexico
Poverty in Mexico and the Poorest States
Different international organisms have developed instruments to measure poverty, the poverty line method refers to the income level a

Remittances to Mexico, Important part of the Economy
The history of migration of Mexican citizens to the United States is not recent; it has obeyed a very particular historical process. The

The 10 Most Important Ports in Mexico
Port of Ensenada; This port is located on Mexico’s northeast corner, in the estate of Baja California, 110 kilometers from the border
The Bank of Mexico
The Bank of Mexico is the central bank of Mexico and was founded on the 1st of September, 1925 by the government of Plutarco Elías Calles.
The Energy Reform in Mexico 2008
Petróleos Mexicanos (PEMEX) is a pillar of Mexico’s economy; it generates approximately 35% of the government’s revenues. In 2008,

The IETU Tax Mexico
The Business Tax to Unique Rate (Impuesto Empresarial de Tasa Única or IETY) was approved by the Congress of the Union in June 2007 as

The Mexican Oil
Two products originate from oil exploitation, crude oil exported in barrels, and in general the derived products such as fuel, asphalt,

The Nationalization of Banks in Mexico
During his last state of the union address, José Lopez Portillo, President of Mexico from 1976 to 1982, decreed the nationalization of

What forms Mexico’s Gross Domestic Product?
Gross Domestic Product (GDP) is the total monetary value of the production of goods and services of a country during a certain lapse

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