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Economics in Mexico

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documents in English
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case study
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2 pages
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  1. Introduction
  2. Mexico's economy
  3. Oil Company and foreign companies
  4. Calderon
  5. Surprising Facts about Mexico and Immigration
  6. Conclusion

Mexico's economy is the thirteenth leading global economy and eleventh when looking at the purchasing power; this is in accordance to the reports of the World Bank (Cantwell et al. 336). Since the crisis that took place in 1994 majority of administrations have made efforts to improve the macroeconomic fundamentals of the country. The recent 2002 South American crisis did not have significant influence in Mexico and the country was able to maintain positive growth rate although they were low with a brief period of stagnation which took place in 2001. However, the 2008 recession affected Mexico and other Latin American nations making its Gross Domestic product contract by more than six percent.

Regardless of unprecedented macroeconomic stability that reduced the record of inflation and interest rates to be low, this has made the per capita income increase leading to enormous gaps between populations living in rural areas and urban areas, states on the northern part and the southern part, and between the rich and the poor. Some of the main challenge the Mexican government faces include improvement in infrastructure, modernizing revenue collection system, changing the labor laws and reduction of inequality of the income (Cantwell et al.).

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