Area:
total: 1,972,550 sq.km
land: 1,923,040 sq.km
water: 49,510 sq.km
Coastline:
5,797 miles (9,330 km)
Area Comparative:
Slightly less than three times the size of Texas
Population:
107,449,525 (July 2006 est.)
| ABOUT MEXICO Area: total: 1,972,550 sq.km land: 1,923,040 sq.km water: 49,510 sq.km Coastline: 5,797 miles (9,330 km) Area Comparative: Slightly less than three times the size of Texas Population: 107,449,525 (July 2006 est.) |
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| Economy: Mexico has a free market economy that recently entered the trillion dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in sea ports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Mexico is the world's largest producer of silver and one of the five major producers of oil. A strong export sector helped to cushion the economy's decline in 1995 and led the recovery in 1996-99. Private consumption became the leading driver of growth, accompanied by increased employment and higher wages. The present administration is cognizant of the need to upgrade infrastructure, modernize the tax system and labor laws, and allow private investment in the energy sector, but has been unable to win the support of the opposition-led Congress. Mexico still needs to overcome many structural problems as it strives to modernize its economy and raise living standards. Trade with the US and Canada has nearly doubled since NAFTA was implemented in 1994. Mexico is pursuing additional trade agreements with most countries in Latin America and has signed a free trade deal with the European Union and Japan. |
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| Since the 1994 devaluation Mexican governments have improved the country's macroeconomic fundamentals. It was not influenced by the recent South American crises and has maintained positive, though small, rate growths after the brief stagnation of 2001. Moody's (in March 2000) and Fitch IBCA (in January 2002) have issued investment-grade ratings for Mexico's sovereign debt. The upgrade from Fitch IBCA was based in part on the determination that Mexico has not been significantly affected by "contagion" from Argentina's debt crisis. Interest rates achieved historic lows in 2001, and are still relatively low compared to last decade's rates. In the same way, inflation for 2005, around 3.3%, is the lowest in 30 years. Also, over the last 10 years to the present, Mexico's rural economy has grown through the remmitances of immigrants working in the United States (see Poverty section). Remittances are a considerably large source of earnings, apart from oil revenues, tourism and foreign investment, and arguably they can be considered as one of the factors that have lead to the reduction of poverty and economic growth in rural communities. |  |
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Gross Domestic Product: Mexico's economy ranked 10-14th (depending on the methodology used) measured in its Gross Domestic Product and Gross National Income. Income per capita, according to the World Bank is the highest in Latin America, and the country is now firmly established as a middle-income country. However, huge gaps and inequality still remain in the distribution of wealth, between the industrialized northern and the poor rural communities of the south-eastern states. In spite of the economic disparities, Mexico is the only Latin American nation that has been admitted into the Organisation for Economic Co-operation and Development, which is composed by developed countries and three newly industrialized nations: Mexico, Turkey and South Korea.
GNP Comparision: Source: 2000
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Trade:
Mexican trade policy is among the most open in the world, and has become an important exporting and importing power. Trade with the United States and Canada has tripled since NAFTA was ratified in 1994. In recent years, almost 85% of Mexico's exports go to the United States, making the Mexican economic cycles very dependent on the American economic behavior. Mexico, however, has signed 12 trade agreements with 43 nations, putting 90% of its trade under free trade regulations.
Mexico joined GATT in 1986, and today is an active and constructive participant of the World Trade Organization. President Fox's administration promotes the establishment of a Free Trade Area of the Americas. Puebla served as temporary headquarters for the negotiations, and several other cities are now candidates for its permanent headquarters if the agreement is reached and implemented.
Major Industries in Mexico:
Food and beverages, tobacco, chemicals, iron and steel, petroleum, mining, textiles, clothing, motor vehicles, consumer durables, tourism.
For more information please visit mexico.us