Mexico

MEX orthographic

Mexico is the 19th largest economy in the world by nominal GDP. It has a GDP per capita of $9,698 USD. Mexico is a member of the G20 and the United States – Mexico – Canada trade agreement (USMCA), formerly known as NAFTA. The Mexican economy, and particularly the car industry, is highly integrated with the USA. 72 percent of its exports went to the US in 2017 and Mexico is the USA's second largest export destination (15.7 percent). Services are the largest sector (60 percent in 2018), followed by manufacturing (17 percent), and agriculture (3.3 percent). Exports are significant representing 39 percent of GDP. The largest export sectors in 2017 were vehicles (23.4 percent), electronics (21.24 percent), machinery (18.53 percent), and agriculture (8.27 percent). The largest individual exports were cars (9.37 percent), car parts (5.75 percent), transport vehicles (5.46 percent), travel and tourism (4.79 percent), computers (4.54 percent), and crude oil (4 percent). After the US, Canada is next large export partner with 6.23 percent. Its largest import goods are parts of motor vehicles (5.62), refined petroleum (5 percent), electronic integrated circuits (4.9 percent), and parts and accessories for office machines (4.3 percent). After the Mexican revolution the economy grew rapidly from the 1930s to the 1970s as the government pursued industrialisation and import-substitution. The government also redistributed land to peasants, nationalised oil and railroad companies, and upgraded infrastructure. With the discovery of large new oil reserves in the 1970s, the government increased social spending, but when the price of oil fell from 1981, Mexico found itself in a debt crisis in 1982. Economic reforms including privatisation in the 1980s increased growth, but the country experienced another debt crisis in 1994. The economy returned to growth with US help, and the economy also began to benefit from NAFTA (1994). Since the 1994 crisis, the economy has enjoyed consistent growth largely due to improvements in macroeconomic fundamentals. The global financial crisis hit hard however with GDP falling by more than 6 percent in 2018. Recently, the government has introduced important tax, pension, and judicial reforms, and has started to liberalise the oil industry in order to attract private investment.

Its population in 2018 was 130,759,074 [1]

In 2015, 9.22% of its total energy
consumption was renewable [2]

In 2021, its GDP grew by 4.80% [2]

In 2021 it had a negative Current
Account Balance of US$bn 4.87 [3]

Its unemployment rate in 2021 was 4.14% [3]

Its Expenditure on R&D (as a percentage of
GDP) in 2020 was 0.30% [2]

A Big Mac will set you back the
local equivalent of US$2.54 [4]



What free trade areas or economic unions is it a member of?

Member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) since 30/12/2018

Other members:

Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, New Zealand, Peru, Singapore, Vietnam


What trade deals are there between Comprehensive and Progressive Agreement for Trans-Pacific Partnership and other countries and economic unions?

None

Member of the North American Free Trade Agreement (NAFTA) since 01/01/1994

Other members:

Canada, United States of America


What trade deals are there between North American Free Trade Agreement and other countries and economic unions?

None


What trade deals are there with other countries and economic unions?

Protocol on Trade Negotiations (from 11/02/1973)

Ecuador - Mexico partial scope agreement (from 01/05/1983)

Mexico - Paraguay partial scope agreement (from 01/01/1984)

Argentina - Mexico partial scope agreement (from 01/01/1987)

Colombia - Mexico free trade agreement (from 01/01/1995)

Chile - Mexico free trade agreement (from 01/08/1999)

Israel - Mexico free trade agreement (from 01/07/2000)

EU - Mexico Global Agreement (from 01/10/2000)

Mexico - Cuba partial scope agreement (from 28/02/2001)

EFTA - Mexico Free Trade Agreement (from 01/07/2001)

Brazil - Mexico partial scope agreement (from 02/05/2003)

Mexico - Uruguay free trade agreement (from 15/07/2004)

Japan - Mexico free trade agreement (from 01/04/2005)

Mexico - Bolivia partial scope agreement (from 07/06/2010)

Peru - Mexico free trade agreement (from 01/02/2012)

Mexico - Central America free trade agreement (from 01/09/2012)

Mexico - Panama free trade agreement (from 01/07/2015)

Pacific Alliance free trade agreement (from 01/05/2016)

MERCOSUR - Mexico partial scope agreement (from 28/12/2016)

UK - Mexico Agreement (from 01/01/2021)


Trade with the United Kingdom

Source: UK Office for National Statistics, October 2019.

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