Economy - overview Mexico has a free market economy with a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity, natural gas distribution, and airports. Income distribution remains highly unequal. Trade with the US and Canada has tripled since the implementation of NAFTA in 1994. Following 6.9% growth in 2000, real GDP fell 0.3% in 2001, with the US slowdown the principal cause. Positive developments in 2001 included a drop in inflation to 6.5%, a sharp fall in interest rates, and a strong peso that appreciated 5% against the dollar. Mexico City implemented free trade agreements with Guatemala, Honduras, El Salvador, and the European Free Trade Area in 2001, putting more than 90% of trade under free trade agreements. Foreign direct investment reached $25 billion in 2001, of which $12.5 billion came from the purchase of Mexico's second largest bank, Banamex, by Citigroup.

GDP purchasing power parity - $920 billion (2001 est.)

GDP - real growth rate -0.3% (2001 est.)

GDP - per capita purchasing power parity - $9,000 (2001 est.)

GDP - composition by sector
agriculture: 5%
industry: 26%
services: 69% (2001 est.)

Population below poverty line 40% (2001 est.)

Household income or consumption by percentage share
lowest 10%: 1.6%
highest 10%: 41.1% (2001)

Distribution of family income - Gini index 51.9 (1996)

Inflation rate (consumer prices) 6.5% (2001 est.)

Labor force 39.8 million (2000)

Labor force - by occupation agriculture 20%, industry 24%, services 56% (1998)

Unemployment rate urban - 3% plus considerable underemployment (2001)

Budget
revenues: $136 billion
expenditures: $140 billion, including capital expenditures of $NA (2001 est.)

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

Industrial production growth rate -3.4% (2001 est.)

Electricity - production 194.367 billion kWh (2000)

Electricity - production by source
fossil fuel: 75.91%
hydro: 16.88%
other: 3.19% (2000)
nuclear: 4.02%

Electricity - consumption 182.829 billion kWh (2000)

Electricity - exports 77 million kWh (2000)

Electricity - imports 2.145 billion kWh (2000)

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

Exports $159 billion (f.o.b., 2001)

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

Exports - partners US 88.4%, Canada 2%, Germany 0.9%, Spain 0.8%, Netherlands Antilles 0.6%, Japan 0.4%, UK 0.4%, Venezuela 0.4%, (2001 est.)

Imports $168 billion (f.o.b., 2001)

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

Imports - partners US 68.4%, Japan 4.7%, Germany 3.6%, Canada 2.5%, China 2.2%, South Korea 2.1%, Taiwan 1.6%, Italy 1.3%, Brazil 1.1% (2001 est.)

Debt - external $191 billion (2001)

Economic aid - recipient $1.166 billion (1995)

Currency Mexican peso (MXN)

Currency code MXN

Exchange rates Mexican pesos per US dollar - 9.1614 (January 2002), 9.3423 (2001), 9.4556 (2000), 9.5604 (1999), 9.1360 (1998), 7.9185 (1997)

Fiscal year calendar year

NOTE: The information regarding Mexico on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Mexico Economy 2002 information contained here. All suggestions for corrections of any errors about Mexico Economy 2002 should be addressed to the CIA.