Mexico Economy 2007

Economy - overview:
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 seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is one-fourth that of the US; income distribution remains highly unequal. Trade with the US and Canada has tripled since the implementation of NAFTA in 1994. Mexico has 12 free trade agreements with over 40 countries including, Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan, putting more than 90% of trade under free trade agreements. The new Felipe CALDERON administration that took office in December 2006 faces many of the same challenges that former President FOX tried to tackle, including the need to upgrade infrastructure, modernize the tax system and labor laws, and allow private investment in the energy sector. CALDERON has stated that his top priorities include reducing poverty and creating jobs. The success of his economic agenda will depend on his ability to garner support from the opposition.

GDP (purchasing power parity):
$1.149 trillion (2006 est.)

GDP (official exchange rate):
$743.5 billion (2006 est.)

GDP - real growth rate:
4.8% (2006 est.)

GDP - per capita (PPP):
$10,700 (2006 est.)

GDP - composition by sector:
agriculture: 3.9%
industry: 26.7%
services: 69.4% (2006 est.)

Labor force:
44.51 million (2006 est.)

Labor force - by occupation:
agriculture: 18%
industry: 24%
services: 58% (2003)

Unemployment rate:
3.2% plus underemployment of perhaps 25% (2006 est.)

Population below poverty line:
17.6% (2004)

Household income or consumption by percentage share:
lowest 10%: 1.6%
highest 10%: 39.4% (2004)

Distribution of family income - Gini index:
46.1 (2004)

Inflation rate (consumer prices):
3.6% (2006 est.)

Investment (gross fixed):
20.4% of GDP (2006 est.)

Budget:
revenues: $207.7 billion
expenditures: $206.9 billion (2006 est.)

Public debt:
23.3% of GDP (2006 est.)

Agriculture - products:
corn, wheat, soybeans, rice, beans, cotton, coffee, fruit, tomatoes; beef, poultry, dairy products; wood products

Industries:
food and beverages, tobacco, chemicals, iron and steel, petroleum, mining, textiles, clothing, motor vehicles, consumer durables, tourism

Industrial production growth rate:
3.6% (2006 est.)

Electricity - production:
222.4 billion kWh (2005)

Electricity - consumption:
183.3 billion kWh (2005)

Electricity - exports:
1.597 billion kWh (2005)

Electricity - imports:
470.7 million kWh (2005)

Oil - production:
3.42 million bbl/day (2005 est.)

Oil - consumption:
1.97 million bbl/day (2004 est.)

Oil - exports:
2.268 million bbl/day (2004)

Oil - imports:
308,500 bbl/day (2004)

Oil - proved reserves:
12.51 billion bbl (1 January 2006)

Natural gas - production:
41.37 billion cu m (2005 est.)

Natural gas - consumption:
47.5 billion cu m (2005 est.)

Natural gas - exports:
282.9 million cu m (2005 est.)

Natural gas - imports:
9.717 billion cu m (2005)

Natural gas - proved reserves:
434.1 billion cu m (1 January 2006 est.)

Current account balance:
$-2.425 billion (2006 est.)

Exports:
$250 billion f.o.b. (2006 est.)

Exports - commodities:
manufactured goods, oil and oil products, silver, fruits, vegetables, coffee, cotton

Exports - partners:
US 84.7%, Canada 2.1%, Spain 1.3% (2006)

Imports:
$256.1 billion f.o.b. (2006 est.)

Imports - commodities:
metalworking machines, steel mill products, agricultural machinery, electrical equipment, car parts for assembly, repair parts for motor vehicles, aircraft, and aircraft parts

Imports - partners:
US 50.9%, China 9.5%, Japan 6%, South Korea 4.2% (2006)

Economic aid - recipient:
$189.4 million (2005)

Reserves of foreign exchange and gold:
$76.33 billion (2006 est.)

Debt - external:
$164.7 billion (2006 est.)

Stock of direct foreign investment - at home:
$236.2 billion (2006 est.)

Stock of direct foreign investment - abroad:
$30.75 billion (2006 est.)

Market value of publicly traded shares:
$348.3 billion (2006)

Currency (code):
Mexican peso (MXN)

Exchange rates:
Mexican pesos per US dollar - 10.899 (2006), 10.898 (2005), 11.286 (2004), 10.789 (2003), 9.656 (2002)