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 FOX 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. The next
government that takes office in December 2006 will confront the same
challenges of boosting economic growth, improving Mexico's
international competitiveness, and reducing poverty.
GDP (purchasing power parity):
$1.064 trillion (2005 est.)
GDP (official exchange rate):
$693 billion (2005 est.)
GDP - real growth rate:
3% (2005 est.)
GDP - per capita (PPP):
$10,000 (2005 est.)
GDP - composition by sector: agriculture: 3.8% industry: 25.9% services: 70.2% (2005 est.)
Labor force: 43.4 million (2005 est.)
Labor force - by occupation: agriculture: 18% industry: 24% services: 58% (2003)
Unemployment rate:
3.6% plus underemployment of perhaps 25% (2005 est.)
Population below poverty line:
40% (2003 est.)