Mexico Economy - 2006

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):
$1.068 trillion (2005 est.)

GDP (official exchange rate):
$699.5 billion (2005 est.)

GDP - real growth rate:
3% (2005 est.)

GDP - per capita (PPP):
$10,100 (2005 est.)

GDP - composition by sector:
agriculture: 4%
industry: 26.5%
services: 69.5% (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.)

Household income or consumption by percentage share:
lowest 10%: 1.6%
highest 10%: 35.6% (2002)

Distribution of family income - Gini index:
54.6 (2000)

Inflation rate (consumer prices):
3.3% (2005)

Investment (gross fixed):
21.1% of GDP (2005 est.)

Budget:
revenues: $181 billion
expenditures: $184 billion; including capital expenditures of $NA (2005)

Public debt:
39.1% of GDP (September 2005)

Agriculture - products:
corn, wheat, soybeans, rice, beans, cotton, coffee, fruit, tomatoes; beef, poultry, dairy products; wood products

Industries:
food and beverages, tobacco, chemicals, iron and steel, petroleum, mining, textiles, clothing, motor vehicles, consumer durables, tourism

Industrial production growth rate:
2.5% (2005 est.)

Electricity - production:
209.2 billion kWh (2003)

Electricity - consumption:
193.9 billion kWh (2003)

Electricity - exports:
1.07 billion kWh (2003)

Electricity - imports:
390.2 million kWh (2003)

Oil - production:
3.42 million bbl/day (2005 est.)

Oil - consumption:
1.752 million bbl/day (2004 est.)

Oil - exports:
1.863 million bbl/day (2004)

Oil - imports:
205,000 bbl/day (2004)

Oil - proved reserves:
33.31 billion bbl (2005 est.)

Natural gas - production:
47.3 billion cu m (2004 est.)

Natural gas - consumption:
55.1 billion cu m (2004 est.)

Natural gas - exports:
0 cu m (2004 est.)

Natural gas - imports:
7.85 billion cu m (2004 est.)

Natural gas - proved reserves:
424.3 billion cu m (2005)

Current account balance:
-$8.97 billion (2005 est.)

Exports:
$213.7 billion f.o.b. (2005 est.)

Exports - commodities:
manufactured goods, oil and oil products, silver, fruits, vegetables, coffee, cotton

Exports - partners:
US 87.6%, Canada 1.8%, Spain 1.1% (2004)

Imports:
$223.7 billion f.o.b. (2005 est.)

Imports - commodities:
metalworking machines, steel mill products, agricultural machinery, electrical equipment, car parts for assembly, repair parts for motor vehicles, aircraft, and aircraft parts

Imports - partners:
US 55.1%, China 7.1%, Japan 5.3% (2004)

Reserves of foreign exchange and gold:
$68.7 billion (2005 est.)

Debt - external:
$174.3 billion (30 June 2005 est.)

Economic aid - recipient:
$1.166 billion (1995)

Currency (code):
Mexican peso (MXN)

Exchange rates:
Mexican pesos per US dollar - 10.898 (2005), 11.286 (2004), 10.789 (2003), 9.656 (2002), 9.342 (2001)