Mexico Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

Mexico's $2.4 trillion economy – 11th largest in the world - has become increasingly oriented toward manufacturing since the North American Free Trade Agreement (NAFTA) entered into force in 1994. Per capita income is roughly one-third that of the US; income distribution remains highly unequal.

 

Mexico has become the US' second-largest export market and third-largest source of imports. In 2017, two-way trade in goods and services exceeded $623 billion. Mexico has free trade agreements with 46 countries, putting more than 90% of its trade under free trade agreements. In 2012, Mexico formed the Pacific Alliance with Peru, Colombia, and Chile.

 

Mexico's current government, led by President Enrique PENA NIETO, has emphasized economic reforms, passing and implementing sweeping energy, financial, fiscal, and telecommunications reform legislation, among others, with the long-term aim to improve competitiveness and economic growth across the Mexican economy. Since 2015, Mexico has held public auctions of oil and gas exploration and development rights and for long-term electric power generation contracts. Mexico has also issued permits for private sector import, distribution, and retail sales of refined petroleum products in an effort to attract private investment into the energy sector and boost production.

 

Since 2013, Mexico’s economic growth has averaged 2% annually, falling short of private-sector expectations that President PENA NIETO’s sweeping reforms would bolster economic prospects. Growth is predicted to remain below potential given falling oil production, weak oil prices, structural issues such as low productivity, high inequality, a large informal sector employing over half of the workforce, weak rule of law, and corruption. Mexico’s economy remains vulnerable to uncertainty surrounding the future of NAFTA — because the United States is its top trading partner and the two countries share integrated supply chains — and to potential shifts in domestic policies following the inauguration of a new a president in December 2018.

Real GDP (purchasing power parity)

$2,306,320,000,000 (2020 est.)

$2,513,410,000,000 (2019 est.)

$2,514,780,000,000 (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

-0.3% (2019 est.)

2.19% (2018 est.)

2.34% (2017 est.)

Real GDP per capita

$17,900 (2020 est.)

$19,700 (2019 est.)

$19,900 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$1,269,956,000,000 (2019 est.)

Inflation rate (consumer prices)

3.6% (2019 est.)

4.9% (2018 est.)

6% (2017 est.)

Credit ratings

Fitch rating: BBB- (2020)

Moody's rating: Baa1 (2020)

Standard & Poors rating: BBB (2020)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 3.6% (2017 est.)

industry: 31.9% (2017 est.)

services: 64.5% (2017 est.)

GDP - composition, by end use

household consumption: 67% (2017 est.)

government consumption: 11.8% (2017 est.)

investment in fixed capital: 22.3% (2017 est.)

investment in inventories: 0.8% (2017 est.)

exports of goods and services: 37.8% (2017 est.)

imports of goods and services: -39.7% (2017 est.)

Agricultural products

sugarcane, maize, milk, oranges, sorghum, tomatoes, poultry, wheat, green chillies/peppers, eggs

Industries

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

Industrial production growth rate

-0.6% (2017 est.)

Labor force

50.914 million (2020 est.)

Labor force - by occupation

agriculture: 13.4%

industry: 24.1%

services: 61.9% (2011)

Unemployment rate

3.49% (2019 est.)

3.33% (2018 est.)

note: underemployment may be as high as 25%

Youth unemployment rate (ages 15-24)

total: 7.9%

male: 7.5%

female: 8.6% (2021 est.)

Population below poverty line

41.9% (2018 est.)

Gini Index coefficient - distribution of family income

36.8 (2018 est.)

48.3 (2008)

Household income or consumption by percentage share

lowest 10%: 2%

highest 10%: 40% (2014)

Budget

revenues: 261.4 billion (2017 est.)

expenditures: 273.8 billion (2017 est.)

Budget surplus (+) or deficit (-)

-1.1% (of GDP) (2017 est.)

Public debt

54.3% of GDP (2017 est.)

56.8% of GDP (2016 est.)

Taxes and other revenues

22.7% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

-$4.351 billion (2019 est.)

-$25.415 billion (2018 est.)

Exports

$434.93 billion (2020 est.) note: data are in current year dollars

$492.73 billion (2019 est.) note: data are in current year dollars

$480.1 billion (2018 est.) note: data are in current year dollars

Exports - partners

United States 75% (2019)

Exports - commodities

cars and vehicle parts, computers, delivery trucks, crude petroleum, insulated wiring (2019)

Imports

$410.66 billion (2020 est.) note: data are in current year dollars

$495.79 billion (2019 est.) note: data are in current year dollars

$505.05 billion (2018 est.) note: data are in current year dollars

Imports - partners

United States 54%, China 14% (2019)

Imports - commodities

integrated circuits, refined petroleum, cars and vehicle parts, office machinery/parts, telephones (2019)

Reserves of foreign exchange and gold

$175.3 billion (31 December 2017 est.)

$178.4 billion (31 December 2016 est.)

note: Mexico also maintains access to an $88 million Flexible Credit Line with the IMF

Debt - external

$456.713 billion (2019 est.)

$448.268 billion (2018 est.)

Exchange rates

Mexican pesos (MXN) per US dollar -

19.8 (2020 est.)

19.22824 (2019 est.)

20.21674 (2018 est.)

15.848 (2014 est.)

13.292 (2013 est.)

NOTE: The information regarding Mexico on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Mexico 2022 information contained here. All suggestions for corrections of any errors about Mexico 2022 should be addressed to the CIA or the source cited on each page.