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 fundamentals.
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 zinc.
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 through 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