Mexico/Economy

Economy - overview: Mexico has a free market economy with a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. The number of state-owned enterprises in Mexico has fallen from more than 1,000 in 1982 to fewer than 200 in 1999. The administration of President [Ernesto Zedillo]? continued a policy of privatizing and expanding competition in sea ports, railroads, telecommunications, electricity, natural gas distribution, and airports which was initiatied by his predecessors [Miguel de la Madrid]? and [Carlos Salinas de Gortari]?.

A strong export sector helped to cushion the economy's decline in 1995 and led the recovery in 1996-99. Private consumption became the leading driver of growth, accompanied by increased employment and higher wages. Mexico still needs to overcome many structural problems as it strives to modernize its economy and raise living standards. Income distribution is very unequal, with the top 20% of income earners accounting for 55% of income. Trade with the US and Canada has nearly doubled since NAFTA? was implemented in 1994. Mexico is pursuing additional trade agreements with most countries in Latin America and has signed a free trade deal with the EU to lessen its dependence on the US. The government is pursuing conservative economic policies in 2000 to avoid another end-of-term economic crisis, but it still projects an economic growth rate of 4.5% because of the strong US economy and high oil prices.

GDP: purchasing power parity - $865.5 billion (1999 est.)

GDP - real growth rate: 3.7% (1999 est.)

GDP - per capita: purchasing power parity - $8,500 (1999 est.)

GDP - composition by sector:
agriculture: 5%
industry: 29%
services: 66% (1999)

Population below poverty line: 27% (1998 est.)

Household income or consumption by percentage share:
lowest 10%: 1.8%
highest 10%: 36.6% (1996)

Inflation rate (consumer prices): 15% (1999 est.)

Labor force: 38.6 million (1999)

Labor force - by occupation: agriculture 24%, industry 21%, services 55% (1997)

Unemployment rate: 2.5% urban (1998); plus considerable underemployment

Budget:
revenues: $117 billion
expenditures: $123 billion, including capital expenditures of $NA (1998 est.)

Industries: food and beverages, tobacco, chemicals, iron and steel, petroleum, mining, textiles, clothing, motor vehicles, consumer durables, tourism

Industrial production growth rate: 4% (1999 est.)

Electricity - production: 176.055 billion kWh (1998)

Electricity - production by source:
fossil fuel: 78.12%
hydro: 13.82%
nuclear: 5%
other: 3.06% (1998)

Electricity - consumption: 164.767 billion kWh (1998)

Electricity - exports: 11 million kWh (1998)

Electricity - imports: 1.047 billion kWh (1998)

Agriculture - products: corn, wheat, soybeans, rice, beans, cotton, coffee, fruit, tomatoes; beef, poultry, dairy products; wood products

Exports: $136.8 billion (f.o.b., 1999), includes in-bond industries (assembly plant operations with links to US companies)

Exports - commodities: manufactured goods, oil and oil products, silver, coffee, cotton

Exports - partners: US 89.3%, Canada 1.7%, Spain 0.6%, Japan 0.5%, Venezuela 0.3%, Chile 0.3%, Brazil 0.3% (1999 est.)

Imports: $142.1 billion (f.o.b., 1999), includes in-bond industries (assembly plant operations with links to US companies)

Imports - commodities: metal-working machines, steel mill products, agricultural machinery, electrical equipment, car parts for assembly, repair parts for motor vehicles, aircraft, and aircraft parts

Imports - partners: US 74.8%, Germany 3.8%, Japan 3.5%, Canada 1.9%, South Korea 2%, Italy 1.3%, France 1% (1999 est.)

Debt - external: $155.8 billion (1999)

Economic aid - recipient: $1.166 billion (1995)

Currency: 1 Mexican peso (Mex$) = 100 centavos

Exchange rates: Mexican pesos (Mex$) per US$1 - 9.4793 (January 2000), 9.5604 (1999), 9.1360 (1998), 7.9185 (1997), 7.5994(1996), 6.4194 (1995)

Fiscal year: calendar year