Mexico is ranked 13^th in the world with regards to GDP, and has the 4^th largest income per-capita in Latin America. Mexico has a mix of private and state-owned enterprise economic systems which recently entered the trillion dollar category. In more recent times Mexico has increased in the amount of private owned companies, with state-owned enterprises on the decline.

 

Historically Mexico’s economy was largely based on mining of silver and gold, and further diversified to include agriculture, petroleum and industry sectors. Mexico is the 4^th largest oil producer in the world and a major producer of non-fuel minerals.

 

Mexico has made an impressive recovery and seen significant growth since its economic crisis in 1994. Mexico’s healthy export centre aided this recovery, along with an increase in private consumption, which was triggered by an increase in employment and wages. Mexico’s close proximity to the largest automobile industry in the world has seen some of the large automobile companies setting up large plants within Mexico. There is also the large television industry, which reaches the Mexican and Spanish speaking population throughout Mexico and the United States.

 

In the last several years Mexico has experienced record-low inflation rates, low interest rates, a reduction in external debt, and a strong peso currency. Trade with the US and Canada has tripled since 1994, with the introduction of NAFTA (the North Atlantic Free Trade Agreement), which has sought to reduce and remove tariffs and duties on goods imported and exported between the countries. Mexico has also sought to reduce its trade barriers with over 35 other countries throughout the world including Japan and the European Union, in 12 separate Free Trade Agreements.

 

Mexico’s major manufactured exports include petroleum, automotive engines, silver, coffer and vegetables. With their major imports being metal working and agricultural machines, motor vehicle parts, aircraft parts, and paper products.

 

The tourism industry is extremely important, and is increasing rapidly each year, the largest draw cards are Mexico’s ancient ruins, its beautiful beaches, its unique culture, and its warm temperatures and sunny climate. The vast majority of tourists come from the US and Canada, and, to a lesser extent, European and Asian populations. There is also an increasing domestic tourist market, as the affluent middle classes are beginning to holiday within these tourist resorts in Mexico.