Mexico is the 13th largest economy in the world and second largest economy in Latin America. Although its GDP fell sharply in 2009 (-6.5%), economic growth rebounded in 2010-2011. However, its economy is vulnerable to external shocks, especially to the state of the U.S. economy, which is why the Mexican growth slowed down again in 2012 (3.3%). Growth should remain at around 3.5% in 2013 according to the most recent estimates, which have downgraded previous figures.
The outlook for the Mexican economy remains favorable. The banking system is sound, and through a policy of budgetary and fiscal restraint, public debt has been contained at less than 40% of GDP and economic stability has been maintained. The discovery of gas fields in the country opens up and makes possible the withdrawal from nuclear energy. President Pena Nieto has announced a reforms program including the liberalization of the economy in order to attract investors, investment in infrastructure, as well as measures for a fairer tax system, better coverage of the social security system and more favorable pensions. The government aims to reach a balanced budget in 2013, thanks to strict spending control. Some reforms have already been undertaken, affecting pensions in the public sector, public finance, the electoral system and the criminal justice system; however, more structural reforms are still needed to address the country's growth potential and competitiveness and to remedy social inequalities. The education system is struggling and the country is heavily dependent on oil revenues and remittances from migrants living in the United States. Security and the fight against drug trafficking remain major concerns and violence is also hampering development.
Less than 5% unemployment is foreseen for 2013, but the informal sector is very large. Inequalities have increased, in terms of income but also in terms of exposure to natural disasters. 46.% of residents are poor. Insecurity related to crimes committed by drug cartels is a major problem.
|Main Indicators||2010||2011||2012||2013||2014 (e)|
|GDP (billions USD)||1,046.71||1,160.73||1,177.40e||1,327.02e||1,395.56|
|GDP (Constant Prices, Annual % Change)||5.1||4.0||3.6e||1.2e||3.0|
|GDP per Capita (USD)||9,158||10,034||10,059e||11,224e||11,687|
|General Government Balance (in % of GDP)||-3.3||-3.0||-3.2e||-3.0e||-3.1|
|General Government Gross Debt (in % of GDP)||42.4||43.6||43.5e||44.0e||45.8|
|Inflation Rate (%)||4.2||3.4||4.1e||3.6e||3.0|
|Unemployment Rate (% of the Labor Force)||5.4||5.2||5.0||4.8||4.5|
|Current Account (billions USD)||-3.23||-11.84||-14.18e||-17.75e||-20.65|
|Current Account (in % of GDP)||-0.3||-1.0||-1.2e||-1.3e||-1.5|
Source: IMF - World Economic Outlook Database - Last Available Data.
Note: (e) Estimated Data
Agriculture accounts for approximately 4% of the GDP and employs 13% of the active population, however, the scarcity of credit continues to penalize this sector. Mexico ranks amongst the world's largest producers of coffee, sugar, corn, oranges, avocadoes and limes. It is also the world's 5th biggest producer of beer and its number two exporter. It is amongst the world's leading producers of many minerals, including silver, fluorite, zinc and mercury, and its oil and gas reserves are one of its most precious possessions: Mexico is the world’s fifth largest producer of oil. The oil company PEMEX is the second most powerful company in Latin America, according to the industry journal América Economía. Cattle farming and fishing are also important economic activities.
The aerospace sector has grown sharply in the last five years, due to the presences of almost 190 companies, such as Bombardier, Goodrich, the Safran group and Honeywell, which together employ 30 000 people. Mexico is also one of the 10th major car producers. The hi-tech, information and software development sectors are also experiencing a real momentum, driven by the quality of the workforce, clusters and low operating costs, which allow for the establishment of call centers.
The tertiary sector contributes to around 60% of the GDP and the construction sector is coming up again due to real estate investments.
|Breakdown of Economic Activity By Sector||Agriculture||Industry||Services|
|Employment By Sector (in % of Total Employment)||13.4||24.1||61.9|
|Value Added (in % of GDP)||3.6||35.7||60.7|
|Value Added (Annual % Change)||6.6||2.8||4.2|
Source: World Bank - Last Available Data.
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The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
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Last Updates: February 2014