Asked in Economics, Mexico
Economics
Mexico

What is Mexico's economy?

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03/08/2018

Mexico is the eleventh largest economy in the world, with a Gross Domestic Product of $2.41 trillion (2017). It is also considered an emerging market, with a GDP per capita of $19,500 (2017), on par to medium-income economies such as Iran ($20,000) or Lebanon ($19,500). Its GDP composition includes 64% towards services, 31.6% to industry and only 3.9% to agriculture.

Unlike other emerging markets, whose economies run on commodities, Mexico has a diversified, manufacturing and export-oriented economy, being an active rival of China for access to the North American, Eastern Asian and European markets. Its exports accounted for $407 billion, and its imports for $417 billion during 2016, setting Mexico as the 12th/13th largest exporter/importer in the world, respectively. The largest Mexican exports include crude machinery and equipment (37%), and motor vehicles and parts (25%), while the largest imports also include machinery and machine parts (39%), as well as motor vehicles and parts (10%).

Some of the largest challenges to Mexico's economic potential include market inefficiencies, corruption and security issues; especially those found in Mexico's southern region which still lags in terms of economic advancement and governance. For example, the state of Oaxaca has the health, education and income of the Sub-Saharan country of Botswana, while Mexico City, capital of the country, has the quality of life of Quebec in Canada, or Aragon in Spain (GDP Per capita: $34,223).

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03/08/2018

Mexico is the eleventh largest economy in the world, with a Gross Domestic Product of $2.41 trillion (2017). It is also considered an emerging market, with a GDP per capita of $19,500 (2017), on par to medium-income economies such as Iran ($20,000) or Lebanon ($19,500). Its GDP composition includes 64% towards services, 31.6% to industry and only 3.9% to agriculture.

Unlike other emerging markets, whose economies run on commodities, Mexico has a diversified, manufacturing and export-oriented economy, being an active rival of China for access to the North American, Eastern Asian and European markets. Its exports accounted for $407 billion, and its imports for $417 billion during 2016, setting Mexico as the 12th/13th largest exporter/importer in the world, respectively. The largest Mexican exports include crude machinery and equipment (37%), and motor vehicles and parts (25%), while the largest imports also include machinery and machine parts (39%), as well as motor vehicles and parts (10%).

Some of the largest challenges to Mexico's economic potential include market inefficiencies, corruption and security issues; especially those found in Mexico's southern region which still lags in terms of economic advancement and governance. For example, the state of Oaxaca has the health, education and income of the Sub-Saharan country of Botswana, while Mexico City, capital of the country, has the quality of life of Quebec in Canada, or Aragon in Spain (GDP Per capita: $34,223).

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07/16/2013

Yes. Mexico is the 11th largest economy in the world, with a GDP per capita of around US$17,500. According to several estimates, it will become the 10th largest economy in 2015, and with enough reforms and a good economic landscape, it may become an industrialized nation within the 15-20 year range.

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04/18/2012

It is defined as an emerging market, (optimistically) just a few decades away from becoming an industrialized nation. It is the 11th largest economy in the world, behind Italy (10th) and ahead of South Korea (12th).

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03/22/2012

Oil and tourism.

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03/22/2012

Mexico is an "emerging market", "developing country" or "newly industrialized country" because although it is the eleventh largest economy in the world (USD$1,567 billion for 2010), it has an ongoing industrialization, where agriculture activities are still important but are rapidly being outpaced by industrial (specially manufacturing) activities. This means Mexico is not fully developed, as many regions within the country have a quality of life equivalent to those of Western Europe, whereas there are other regions with education, life expectancy and economic advancement equivalent to those countries found in Sub-Saharan Africa.

For instance, the Human Development Index (HDI) is a ranking created by the United Nations Development Program (UNDP) to measure countries or regions according to three basic population parameters: health, education and income. For Mexico, which is composed by 31 states and one federal district, the Federal District and Nuevo Leon had the highest HDI in 2004 (0.8837 and 0.8513, respectively), while the lowest corresponded to Chiapas (0.7185) and Oaxaca (0.7336). As a comparison, the Federal District and Nuevo Leon indexes are equivalent to those of the Czech Republic and Lithuania while Chiapas and Oaxaca correspond to those of Vietnam and Iran.

On a municipality level, this contrasts are much more dramatic: The Benito Juarez district (Federal District), the San Pedro Garza Garcia municipality (Nuevo Leon) and the San Sebastian Tula municipality (Oaxaca) have the highest HDI in Mexico (0.9509, 0.95, 0.9204, respectively) which correspond to the life quality levels of Norway, Australia and Spain. By contrast, Tehuipango (Veracruz, 0.4985), Coicoyan de las Flores (Oaxaca, 0.4768), Batopilas (Chihuahua, 0.4734) and Cochoapa el Grande (Guerrero, 0.4354) correspond to the quality of life of Madagascar, Haiti, Kenya and Benin.

Therefore, until Mexico attains certain "threshold of development" where all its people has a certain quality of life, it will continue to be considered a "developing country".

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03/22/2012

It has a mixed economy, meaning it has privately owned industries as well as some government owned industries.

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10/20/2011

Mexico is the tenth largest economy in the world, with a GDP of US$1.85 trillion (2013). It is also the eleventh in terms of population (120,286,655) and the fifteenth and sixteenth largest importing and exporting country (US$370.9 billion and US$370.7 billion, respectively) worldwide.

Mexico is also one of the countries with most trade agreements in the world, having 12 free trade agreements with over 40 countries including North and Central America, the European Free Trade Area and Japan, putting more than 90% of its trade under free trade agreements.

Finally, although the BRIC countries (Brazil, Russia, India, China) are considered to be the fastest-growing developing economies - and much media attention has been paid to them - it is estimated that by the end of 2050, Mexico will be the fifth largest economy in the world, just behind China, the United States, India and Brazil.

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08/30/2011

It is an emerging market where the services and commerce sector are paramount, but a large portion of the workforce is dedicated to manufacturing. It is also considered to be a mixed economy where almost every business is privately owned with some exceptions, including the oil and electricity industries.

  • Mexico has a GDP of US$1.68 trillion, ranked as 11th largest in the world (2011).
  • Mexico's GDP per capita is around US$14,800, on par to countries such as Guam, Turkey or Panama.
  • The GDP composition includes 3.8% for agriculture, 34.2% for industry and 62% for services.
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10/21/2009

Services and commerce with 58% of national income; industry and agriculture with 24% and 18% respectively.

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10/09/2009

From the CIA World Factbook:

Mexico has a free market economy in the trillion dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector.