Mexico: Economy#

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.

Economic Facts#

GDP (purchasing power parity)$2.307 trillion (2016 est.)
$2.259 trillion (2015 est.)
$2.205 trillion (2014 est.)
note: data are in 2016 dollars
GDP (official exchange rate)$1.064 trillion (2015 est.)
GDP - real growth rate2.1% (2016 est.)
2.5% (2015 est.)
2.2% (2014 est.)
GDP - per capita (PPP)$18,900 (2016 est.)
$18,700 (2015 est.)
$18,400 (2014 est.)
note: data are in 2016 dollars
Gross national saving20.3% of GDP (2016 est.)
19.9% of GDP (2015 est.)
19.5% of GDP (2014 est.)
GDP - composition, by end usehousehold consumption: 69.6%
government consumption: 12.3%
investment in fixed capital: 22.6%
investment in inventories: -1.8%
exports of goods and services: 36.1%
imports of goods and services: -38.8% (2016 est.)
GDP - composition, by sector of originagriculture: 3.7%
industry: 33.1%
services: 63.2% (2016 est.)
Agriculture - productscorn, wheat, soybeans, rice, beans, cotton, coffee, fruit, tomatoes; beef, poultry, dairy products; wood products
Industriesfood and beverages, tobacco, chemicals, iron and steel, petroleum, mining, textiles, clothing, motor vehicles, consumer durables, tourism
Industrial production growth rate3.3% (2016 est.)
Labor force53.74 million (2016 est.)
Labor force - by occupationagriculture: 13.4%
industry: 24.1%
services: 61.9% (2011)
Unemployment rate4.4% (2016 est.)
4.4% (2015 est.)
note: underemployment may be as high as 25%
Population below poverty line52.3%
note: based on food-based definition of poverty; asset-based poverty amounted to more than 47% (2012 est.)
Household income or consumption by percentage sharelowest 10%: 2%
highest 10%: 37.5% (2010)
Distribution of family income - Gini index48.3 (2008)
53.1 (1998)
Budgetrevenues: $224.3 billion
expenditures: $255.9 billion (2016 est.)
Taxes and other revenues21.1% of GDP (2016 est.)
Budget surplus (+) or deficit (-)-3% of GDP (2016 est.)
Public debt49.7% of GDP (2016 est.)
46.5% of GDP (2015 est.)
Fiscal yearcalendar year
Inflation rate (consumer prices)2.7% (2016 est.)
2.7% (2015 est.)
Central bank discount rate4.5% (31 December 2012)
4.5% (31 December 2011)
Commercial bank prime lending rate4.3% (31 December 2016 est.)
3.42% (31 December 2015 est.)
Stock of narrow money$192.3 billion (31 December 2016 est.)
$194.8 billion (31 December 2015 est.)
Stock of broad money$826.7 billion (31 December 2014 est.)
$727 billion (31 December 2013 est.)
Stock of domestic credit$400.3 billion (31 December 2016 est.)
$398.9 billion (31 December 2015 est.)
Market value of publicly traded shares$402.3 billion (31 December 2015 est.)
$480.2 billion (31 December 2014 est.)
$526 billion (31 December 2013 est.)
Current account balance-$29.03 billion (2016 est.)
-$32.71 billion (2015 est.)
Exports$359.3 billion (2016 est.)
$381 billion (2015 est.)
Exports - commoditiesmanufactured goods, oil and oil products, silver, fruits, vegetables, coffee, cotton
Exports - partnersUS 81.1% (2015)
Imports$372.8 billion (2016 est.)
$395.6 billion (2015 est.)
Imports - commoditiesmetalworking machines, steel mill products, agricultural machinery, electrical equipment, automobile parts for assembly and repair, aircraft, aircraft parts
Imports - partnersUS 47.3%, China 17.7%, Japan 4.4% (2015)
Reserves of foreign exchange and gold$176.4 billion (31 December 2016 est.)
$178 billion (31 December 2015 est.)
Debt - external$484.6 billion (31 December 2016 est.)
$441.6 billion (31 December 2015 est.)
Stock of direct foreign investment - at home$384.3 billion (31 December 2016 est.)
$356.9 billion (31 December 2015 est.)
Stock of direct foreign investment - abroad$153.3 billion (31 December 2016 est.)
$142.9 billion (31 December 2015 est.)
Exchange ratesMexican pesos (MXN) per US dollar -
18.34 (2016 est.)
15.848 (2015 est.)
15.848 (2014 est.)
13.292 (2013 est.)
13.17 (2012 est.)