Mexico is the second largest economy, in
terms of GDP and population in Latin America.
Mexico is the
Latin American giant in foreign
trade, accounting for almost 40 per cent of the total trade of the region.
After having gone through various crises,
Mexico's economy has now stabilised and is healthy with strong
Inflation and primary lending rates are in
single-digit. The Government has been following fiscal discipline and has
kept current account deficit below 2 per cent.
Mexico is a member of the Organisation for
Economic Cooperation and Development (OECD). That means its investment
practices and business regulations are generally the same as those of the
developed OECD countries.
Mexico is an
energy-surplus country; it is
one of the largest producers and exporters of crude oil. Mexico produces
3.25 million bpd (barrels per day) and is among the top four oil exporters
to the US. Mexico also has rich deposits of gold, silver, copper, iron and
Manufactured products account for 89 per
cent of total exports, petroleum 8 per cent and agro-products 2.4 per
cent. This makes Mexico different from the rest of Latin American
countries, which mainly export raw materials and commodities. Mexico
exports more than one million vehicles annually. It is the main maker of
television sets in North America with an annual production of 25 million
units. It is a major supplier of textiles to the US.
After Canada, Mexico was the
largest trading partner of the US
until China replaced it in 2006. US accounts for 91 per cent of Mexico's
exports and 62 per cent of its imports.
Mexico is a member of NAFTA , which
includes USA and Canada.
30% of GDP of mexico is dependent on USA
exports and remittances. There
are 12 million Mexicans in USA sending back 23 billion dollars a year.
Mexico has signed the maximum number of
free trade agreements (FTAs). It has FTAs with 33 countries and has
preferential market access to
850 million consumers, including
European Union, Latin American countries, Israel, Korea and Japan.
There are a number of assembly units,
called as maquilladoras,in the border with USA. Taking advantage of the
NAFTA, these units assemble products for exports to USA.