Mexico Economy 2008

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. In 2007, during his first year in office, the Felipe CALDERON administration was able to garner support from the opposition to successfully pass a pension and a fiscal reform. The administration continues to face many economic challenges including the need to upgrade infrastructure, modernize labor laws, and allow private investment in the energy sector. CALDERON has stated that his top economic priorities remain reducing poverty and creating jobs.

GDP (purchasing power parity):
$1.353 trillion (2007 est.)

GDP (official exchange rate):
$784.4 billion (2007 est.)

GDP - real growth rate:
3% (2007 est.)

GDP - per capita (PPP):
$12,500 (2007 est.)

GDP - composition by sector:
agriculture: 3.9%
industry: 26.3%
services: 69.9% (2007 est.)

Labor force:
45.38 million (2007 est.)

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

Unemployment rate:
3.7% plus underemployment of perhaps 25% (2007 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):
4% (2007 est.)

Investment (gross fixed):
21.5% of GDP (2007 est.)

Budget:
revenues: $209.2 billion
expenditures: $209.2 billion (2007 est.)

Public debt:
23.1% of GDP (2007 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:
1.2% (2007 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:
3.784 million bbl/day (2005 est.)

Oil - consumption:
2.078 million bbl/day (2005 est.)

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

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

Oil - proved reserves:
12.88 billion bbl (1 January 2006 est.)

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:
-$5.414 billion (2007 est.)

Exports:
$267.5 billion f.o.b. (2007 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:
$279.3 billion f.o.b. (2007 est.)

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:
$85.11 billion (31 December 2007 est.)

Debt - external:
$182 billion (30 June 2007)

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 - 10.8 (2007), 10.899 (2006), 10.898 (2005), 11.286 (2004), 10.789 (2003)