Economic Indicators

 

GDP : $893 Billion. / Per capita GDP : $8,200 USD.
Annual real GDP growth: (2007) 3.3%; (2006) 4.8%; (2005) 3.0%
Inflation rate: (2007) 3.8%; (2006) 3.4%; (2005) 3.3%;

 

Natural resources: Petroleum, silver, copper, gold, lead, zinc, natural gas, timber. Among others.

Economic Structure

Trade (Goods): Exports (2007)–$272 billion. Imports (2007)–$283 billion.

Foreign direct investment (FDI] for 2007: $23.2 billion USD.
Foreign Companies in Mexico: 17,000 plus.

Interest rates

While progress on the structural reform agenda is a new development, disciplined fiscal and monetary policy has been in place for nearly a decade, helping to consolidate macroeconomic stability. A free float and an inflation targeting regime were adopted by the independent Banco de México (the central bank) in 2001, and this has engendered confidence in the credibility and transparency of monetary policy. This has helped to bring about a fall in inflationary expectations, a generally downward trend in real interest rates and a narrowing of spreads between Mexican and US rates. The central bank has demonstrated its determination to keep inflation within the target range of 2-4%. Supply shocks meant that inflation was slightly outside the target band in 2007, but owing to strong central bank credibility inflation expectations increased only slightly. (Source : Econmist)

Public debt

The government”s close adherence to its fiscal targets and an active debt management policy (focused on reducing reliance on foreign borrowing, reducing financing costs and extending the maturity of domestic debt) have also been central factors in reducing macroeconomic vulnerability. Tight control of expenditure has kept the federal government finances close to balance or only moderately in deficit (to the tune of less than 2% of GDP) throughout the past decade. In 2006 the public finances recorded a surplus for the first time in over a decade, owing to an acceleration of GDP growth and a boost to fiscal revenue from historically high oil prices. (Source : Economist)

Network of FTAs

Mexico boasts Latin America’s most extensive network of free-trade agreements (FTAs). The most important is NAFTA, which joins Mexico’s market with those of the US and Canada. However, with an FTA with the EU in effect since 2001 and one with Japan launched in 2005, Mexico now has free-trade pacts with all the world’s richest markets. Once Mexico.s other free-trade partners are factored in, the countries involved account for two-thirds of global GDP. Mexico has in recent years signed bilateral FTAs with Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, El Salvador, the European Free Trade Association, Guatemala, Honduras, Israel, Nicaragua, Uruguay and Venezuela. The government is also working on FTAs with India, Panama, and Trinidad and Tobago, and talks with China have been launched, with the aim of boosting trade and investment and reaching a deal to avoid double taxation. A central aim of the proliferation of FTAs is to reduce Mexico”s dependence on trade with the US. (Source : Economist)