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Economy of Mexico PDF Print E-mail
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Sunday, 26 June 2011 07:44

Mexico tourism and economyMexico has the 13th largest nominal GDP and the 11th largest by purchasing power parity. In 2010, nominal GDP was $1.041 trillion while GDP by PPP was $1.629 trillion. GDP annual average growth for the period of 1995–2002 was 5.1%. Foreign debt decreased to less than 20% of GDP.

From 2000 to 2004, the population in poverty has decreased from 24.2% to 17.6% in the general population and from 42% to 27.9% in rural areas. Since the late 1990s, the majority of the population has been part of the growing middle class. According to Goldman Sachs, by 2050 Mexico will have the 5th largest economy in the world.

According to a 2008 UN report the average income in a typical urbanized area of Mexico was $26,654, a rate higher than advanced nations like South Korea or Taiwan, while the average income in rural areas just miles away was only $8,403, a rate comparable to developing countries such as Russia or Turkey.

In 2006, trade with the United States and Canada accounted for almost 50% of its exports and 45% of its imports. During the first three quarters of 2010, the United States had a $46.0 billion trade deficit with Mexico. In August 2010 Mexico surpassed France to became the 9th largest holder of US debt. The commercial and financial dependence on the US is a cause for concern. The remittances from Mexican citizens working in the United States account for 0.2% of Mexico's GDP which was equal to US$20 billion dollars per year in 2004 and is the tenth largest source of foreign income after oil, industrial exports, manufactured goods, electronics, heavy industry, automobiles, construction, food, banking and financial services. According to Mexico's central bank, remittances in 2008 amounted to $25bn.

Mexico is the largest North American auto-producing nation, recently surpassing Canada and the U.S. The industry produces technologically complex components and engages in some research and development activities. The "Big Three" (General Motors, Ford and Chrysler) have been operating in Mexico since the 1930s, while Volkswagen and Nissan built their plants in the 1960s. In Puebla alone, 70 industrial part-makers cluster around Volkswagen. The relatively small domestic car industry is represented by DINA S.A., which has built buses and trucks for almost half a century, and the new Mastretta company that builds the high performance Mastretta MXT sports car.

Foreign firms such as MD Helicopters and Bombardier build helicopters and commercial jets respectively in Mexico.

A percentage of American-branded home appliances are actually of Mexican origin but sold under local brand names. As of 2008, one out of every four consumer appliances sold in the United States was of Mexican origin.

In 2010, Mexico had 86 companies in the Forbes Global 2000 list. Mexico is the first and only Latin American country to be included in the World Government Bond Index or WGBI, which list the most important global economies that circulate government debt bonds.

Major players in the broadcasting industry are Televisa, the largest Spanish media company in the Spanish-speaking world, and TV Azteca.

 

Last Updated on Sunday, 26 June 2011 08:17