From the 1940's until the 1960's there was a strong economic growth in Mexico. This strong economic performance proceeded into the 60's. Manufacturing was the country's dominant growth sector and attracted many foreign investors. Although there was a growth in Mexico, there was fiscal mismanagement which also resulted in a sharp deterioration of the investment climate. During the leadership of José Lopez Portillo during the mid 70's, Mexico became a huge petroleum producer. At the end of his term of leadership Mexico had a huge external debt, because of Mexico's huge governmental borrowing due to the high amount of incomes from petroleum.Oil and petrochemicals became the economy's most dynamic growth sector. In 1973, the oil shock combined with fiscal mismanagement caused a huge disequilibrium in the balance of payment in Mexico. It even became unmanageable as capital flight intensified, forcing the government to devalue the peso by 45%. This action ended Mexico's twenty year fixed exchange rate and started the popular Mexican Sexenio crisis. Between 1978 and 1981, the government spent heavily on energy, transportation, and basic industries.
[...] Those Governments have spent a lot of money to promote Mexico to foreign investors. During this period, enhance of petroleum prices, which are very profitable to Mexico's GDP growth: the Import Substitution Industrialization as a development strategy seem to have been successful. But, in the 1980s, oil prices fall down and the country can't pay its debt because of increase of American interest rates. Moreover, the crisis isn't only in Mexico, the world goes into a profound recession that's why Mexican exports prices decrease. [...]
[...] Mexico is known as a country of many economic crises, but they have always managed to come out of their crisis. It is most likely that a crisis will occur again, especially when the economic crisis hits The United States, since most of their exports go to the US. CONCLUSION Mexico has many strengths but also many weaknesses. One of their main strengths is that they export oil, this is especially important since the oil prices have gone up to more than 53 $ a barrel. [...]
[...] In 1997, the Institutional Revolutionary Party Mexico's "official" party, was the country's preeminent political organization from 1929 until the early 1990s, lost control of the lower legislative house and the mayoralty of Mexico City in a stunning upset. To increase democracy, President Ernesto Zedillo said in 1999 that he would break precedent and not personally choose the next PRI presidential nominee. In elections held July the PRI lost the presidency, ending 71 years of one-party rule. Vicente Fox Quesada, of the conservative National Action Party took 43% of the vote to Labastida's 36%. [...]
[...] In 1994 the economy was looking strong and Mexico enters in OECD, it's a stable period, that's why foreign direct investments raise. Until 1982, Mexico was one of the most protected economies of the world, and because of the measures the government took, such as becoming a member of the GATT in 1986, reducing the portion of imports requiring licenses, lowering the maximum tariff rate from 100 percent in 1982 to 20 percent in 1988, reducing the average tariff rate to 25 percent in percent in 1987, and 10 percent in 1988 and because of NAFTA they have one of the most open economies today. [...]
[...] The devaluation of the peso in Mexico and the continued pressure of inflation is a factor Mexico must cope with. SOURCES Internet - http://www.cia.gov/cia/publications/factbook/geos/mx.html - www.latin-focus.com - www.forecasts.org/data/index.htm - www.abc-latina.com/bresil/actualites/1995.htm - http://www.mexico-trade.com/macro.html - http://www.ppionline.org/ - http://www.imf.org/external/pubs/ft/fandd/2001/06/lane.htm - http://cartoflash.free.fr/motcle/pages/criseeco.htm - http://www.ptb.be/scripts/article.phtml?obid=13683&lang=1 - http://www.latin- focus.com/latinfocus/countries/mexico/mexeireal.htm - http://fr.wikipedia.org/wiki/PIB_du_Mexique - http://www.amcham.com.mx/publicaciones/business/agosto04/who.html - http://www.banamex.com/esp/pdf_bin/esem/esemagosto04.pdf - http://naid.sppsr.ucla.edu/NAFTA96/TablesFiguresMaps.html - http://www.banxico.org.mx/sie/sectoresi.asp?idana=n&idioma=ing - http://www.geoinvestor.com/statistics/mexico/economicdata.htm - http://www.imf.org/external/pubs/ft/fandd/2001/06/lane.htm Books - "The Oxford Handbook of international business" - by A. Rugman and T. Brewer - "Economics of development" - by Perkins, Rodelet, Snodgrass, Gillis, Roemer - "The World Economy" - by Angus Maddison - “International economics” - by James Gerber APPENDICES Some global figures GDP - real growth rate: (2003 est.) GDP - per capita: purchasing power parity - $9,000 (2003 est.) GDP - composition by sectors: ( Agriculture: ( Industry: ( Services: (2003 est.) Inflation rate (consumer prices): (2003 est.) Unemployment rate: plus underemployment of perhaps 25% (2003) Mexico is 25th country with this unemployment rate. [...]
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