Mexico’s $1.3 trillion economy is one of the largest economies in the world and is a member of the G20 group of wealthy nations. It is ranked the 11th largest economy by purchasing power and ranked 15th by gross domestic product (GDP). Mexico is one of the U.S.’s largest trading partners, being the third largest supplier of imports into the U.S. and the second largest export market, with over $500 billion of trade between the two countries in 2013.
Mexico is considered to be in the upper echelon of middle income countries and following on from the global financial crisis, it has experienced average GDP growth rates of 3.3% for each the five years up to 2014, which is considered to be well below the potential growth rate.
Mexico’s economy has gravitated more towards a manufacturing base over the past twenty years since the signing of the North American Free Trade Agreement (NAFTA). Mexico also has free trade agreements with the European Union, Japan, El Salvador, Guatemala and Honduras, which has resulted in more than 90% of Mexico’s trade falling under these agreements. It is a financially and politically stable country, with excellent transportation and communications infrastructure, and with a workforce that is highly skilled and experienced in the natural resources sector. There are also no restrictions on foreign ownership.
Mexico’s electronics sector has experienced significant growth over the past decade, now representing the sixth largest global electronics sector, behind the United States, China, Japan, South Korea and Taiwan. The sector accounts for 30% of all of Mexico’s exports and has experienced growth rates comfortable in the double figures over the last ten years. Mexico is also the largest automobile manufacturer in North America.
Mexico is the sixth largest oil producer in the world, producing 3.5 million barrels a day. The state owned company in charge of the oil and gas industry, Pemex, is one of the largest companies in the world, with revenues exceeding US$85 billion per year prior to the recent oil price collapse. Mexico is the world’s largest silver producer and a major producer of gold, iron and copper.
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