Mexico

Mexico

GDP $1,144 B As of December 2016
At a Glance
  • GDP Growth: 2.5%
  • GDP per Capita: $9,000
  • Trade Balance/GDP: -2.9%
  • Population: 123.2M
  • Public Debt/GDP: 47%
  • Unemployment: 4.4%
  • Inflation: 2.7%
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Profile

Mexico's $2.2 trillion economy has become increasingly oriented toward manufacturing in the 22 years since the North American Free Trade Agreement (NAFTA) entered into force. 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 2014, two-way trade in goods and services exceeded $590 billion. Mexico has free trade agreements with 46 countries, putting more than 90% of trade under free trade agreements. In 2012, Mexico formally joined the Trans-Pacific Partnership negotiations and formed the Pacific Alliance with Peru, Colombia, and Chile. Mexico's current government, led by President Enrique Pena Nieto, emphasized economic reforms during its first two years in office, passing and implementing sweeping education, 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. The second and third auctions demonstrated the capacity for the Mexican Government to adapt and improve the terms of the contracts to garner sufficient interest from investors amid low oil prices. Although the economy experienced stronger growth in 2014-15 as a result of increased investment and stronger demand for Mexican exports, 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 20% of government revenue comes from the state-owned oil company, PEMEX. The increasing integration of supply chains, development of energy sectors, and government-to-government focus on trade facilitation will continue to make the North American region increasingly competitive and contribute to Mexican economic development and strength. More »

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People
Companies
Rankings
Trade Freedom
69
Monetary Freedom
74
Property Rights
77
Innovation
55
Technology
73
Red Tape
75
Investor Protection
52
Corruption
90
Personal Freedom
64
Tax Burden
88
Market Performance
36
  • All economic data for 2015. Market performance based on country’s major stock index returns for 12 months through December 12.
  • Rankings: 1 = best in category
  • = substantial improvement
  • = substantial deterioration
  • Sources: Heritage Foundation; World Economic Forum; Transparency International; Freedom House; World Bank; Central Intelligence Agency; Property Rights Alliance.