Mexico » Introduction

Basic Economic Facts

According to the World Bank, Mexico ranks 13th in the world in regard to GDP and has the third largest per capita income in Latin America just after Argentina and Chile, and it is firmly established as an upper middle-income country. Since the economic crisis of 1994–1995 the country has made an impressive economic recovery. According to the director for Colombia and Mexico of the World Bank, the population below the poverty level has decreased from 24.2% to 17.6% in the general population and from 42% to 27.9% in rural areas from 2000-2004.

Mexico has a free market economy that recently entered the trillion dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in sea ports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Mexico is the world's largest producer of silver and one of the five major producers of oil.

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. The present administration is cognizant of the need to upgrade infrastructure, modernize the tax system and labor laws, and allow private investment in the energy sector, but has been unable to win the support of the opposition-led Congress. Mexico still needs to overcome many structural problems as it strives to modernize its economy and raise living standards.