Economy of Mexico

Mexico :Economic Profile
Going by a report published by Goldman Sachs, Mexico could be one of the world’s largest economies by 2050 after China, USA, India, Japan, and Brazil.
GDP of Mexico
Mexico is the world’s 12th largest economy. The GDP of Mexico stood at 1346 billion USD calculated on a Purchasing Power Parity basis. Mexico’s economy has a share of 2 % in the world economy. Mexico has the highest per capita Income amongst the Latin American countries as per a 2007 World Bank report in that the country's in market exchange rates was the second highest in Latin America

Growth rate of the Economy of Mexico

The annual growth rate of Mexico’s economy stood at more than 3 % in 2007. The economy of Mexico has been growing at a stable rate of between 3-4 % over the last few years. The growth rates for the last few years are depicted in the chart below:

The composition of the Economy of Mexico is depicted in the graph below. Services form the biggest chunk of the GDP of Mexico followed by Industry and then by Agriculture.

Trade
The Economy of Mexico is highly coupled to the economy of the USA since more than 85 % of Mexico’s exports are to the USA. Mexico’s total exports for 2007 stood at nearly USD 272 billion while the imports for the same period stood at USD 283 billion. Mexico’s major imports were from US (53%), China (8%) and Japan (5%). Mexico’s major import items include electronic equipment, automotive parts, and chemicals while the major Mexican exports include petroleum, automobiles and electronic equipment.

Mexico is a member of NAFTA, WTO, and OECD

Agriculture

Agriculture contributes around 4% of the economy of Mexico, though it employs more than 16 % of the population. Mexico ranks amongst the top producers in the world for a number of agricultural products.
Though corn originated in Mexico, Mexico is not the largest producer of corn. It is the fourth largest producer of corn. Mexico’s major export item is not corn, but horticulture products, fruits, and vegetables.

Industry

Amongst the most important industries of Mexico is the automotive industry. Almost all the major auto majors have operations in Mexico – General Motors, Ford, Chrysler, Volkswagen , Nissan, BMW, Mercedes-Benz and Toyota –to name a few.Other industries include the cement industry where Cemex, the world’s third largest cement manufacturer, has operations.Other big players in Mexico include Grupo Modelo (alcohol), Gruma (world’s largest corn flour producer). Mexico also has an aerospace industry. Companies such as Bombardier manufacture helicopters in Mexico.

Oil Industry
Mexico is the world's 5th largest crude oil producer. Pemex, the state-owned oil company, has a monopoly in the Oil and gas sector in Mexico.

Financial sector

The companies in the financial and banking sector of Mexico is mostly under foreign ownership. A series of acquisitions has led Mexico’s financial sector to go under foreign ownership The Mexican Stock Exchange, also known Bolsa is Mexico’s securities market. It is also the 2nd largest stock exchange in Latin America. IPC is the stock index on the Bolsa.Mexico’s central bank is Banco de México and Mexico’s currency is the Mexican peso (MXN).