Economics in Mexico
- Mexico's economy
- Oil Company and foreign companies
- Surprising Facts about Mexico and Immigration
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.).
[...] The economy of Mexico and its culture is changing and for many years, Mexican economy underperformed that of Brazil until in 2012 when it grew faster. Mexico has now become one of the best manufacturing center for electronic commodities such as flat-screen televisions, aero parts and other medical devices that are later exported to the United States,. Some of the changes witnessed in Mexico include the new President Enrique Nieto who proposed a bill that would privatize the country's oil industry and be able to attract the foreign direct investment that is needed. [...]
[...] The economy of Mexico is often export oriented and over 90% of business that are conducted in Mexico are under free trade agreement with over forty countries that include Israel, Japan, Central America, etc. NAFTA is one of the most influential free trade agreements that are used in Mexico beginning 1994; some of the governments that signed into NAFTA include the United States and Canada of all the exports and 55% of all the imports that took place in 2006 was between Mexico and two northern partners; there has been an approval of the judicial reforms and import tax from the Congress of Union while the reforms regarding oil industry is still under debate. [...]