The economy of Mexico is 12th largest in the world,^[1] with a gross domestic product (by PPP estimate) that surpassed a trillion dollars in 2004,^[2] measured in purchasing power parity. Mexico has a free market and export-oriented economy and is firmly established as an advanced middle-income country.^[3] According to the World Bank's latest available figure (September 14, 2007), it has the highest income per capita in Latin America, in market exchange rates and in purchasing power parity.^[4] Mexico is the only Latin American member of the Organisation for Economic Co-operation and Development. According to Goldman Sachs BRIMC review of emerging economies, by 2050 the largest economies in the world will be as follows: China, USA, India, Japan, Brazil, and Mexico.^[5] ISO 4217 Code MXN User(s) Mexico Inflation 3. ... The Bank of Mexico (Spanish: Banco de México), abbreviated BdeM or Banxico, is Mexicos central bank and lender of last resort. ... Nafta or NAFTA may refer to: an acronym for the North American Free Trade Agreement an acronym for the New Zealand Australia Free Trade Agreement the town/Tokyo of Nafta, Tunisia This is a disambiguation page: a list of articles associated with the same title. ... For other uses of the initials WTO, see WTO (disambiguation). ... The Organization for Economic Co-operation and Development (OECD) is an international organization of those developed countries that accept the principles of representative democracy and a free market economy. ... The Bolsa Mexicana de Valores or BMV is Mexicos main stock exchange. ... GDP redirects here. ... One million million (1,000,000,000,000) is the natural number following 999,999,999,999 and preceding 1,000,000,000,001. ... PPP of GDP for the countries of the world (2003). ... A market economy (also called a free market economy or a free enterprise economy) is an economic system in which the production and distribution of goods and services take place through the mechanism of free markets (though completley useless to some dumbasses) guided by a free price system. ... is the 257th day of the year (258th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) was a common year starting on Monday of the Gregorian calendar in the 21st century. ... Latin America consists of the countries of South America and some of North America (including Central America and some the islands of the Caribbean) whose inhabitants mostly speak Romance languages, although Native American languages are also spoken. ... In finance, the exchange rate between two currencies specifies how much one currency is worth in terms of the other. ... PPP of GDP for the countries of the world (2003). ... The Organisation for Economic Co-operation and Development (OECD), (in French: Organisation de coopération et de développement économiques; OCDE) is an international organisation of thirty countries that accept the principles of representative democracy and a free market economy. ... The Goldman Sachs Group, Inc. ... Location of the five BRIMC countries BRIMC is a relatively new term used to refer to the combination of Brazil, Russia, India, Mexico and China. ... Motto: (traditional) In God We Trust (official, 1956–present) Anthem: The Star-Spangled Banner Capital Washington, D.C. Largest city New York City Official language(s) None at the federal level; English de facto Government Federal Republic  - President George W. Bush (R)  - Vice President Dick Cheney (R) Independence - Declared - Recognized...

Since the 1994 crisis, administrations have improved the country's macroeconomic fundamentals. Mexico was not significantly influenced by the recent 2002 South American crisis, and has maintained positive, although low, rates of growth after a brief period of stagnation in 2001. Moody's (in March 2000) and Fitch IBCA (in January 2002) issued investment-grade ratings for Mexico's sovereign debt. In spite of its unprecedented macroeconomic stability, which has reduced inflation and interest rates to record lows and has increased per capita income, enormous gaps remain between the urban and the rural population, the northern and southern states, and the rich and the poor.^[2] Some of the government's challenges include the upgrade of infrastructure, the modernization of the tax system and labor laws, and the reduction of income inequality. The 1994 economic crisis in Mexico, widely known as the Mexican peso crisis, was triggered by the sudden devaluation of the Mexican peso in the early days of the presidency of Ernesto Zedillo. ... The South American Economic Crisis is the economic disturbances which have developed in 2002 in the South American countries of Argentina, Brazil and Uruguay. ... Moodys Corporation (NYSE: MCO) is the holding company for Moodys Investors Service which performs financial research and analysis on commercial and government entities. ... Fitch Ratings, Ltd. ...

The economy contains a mixture of modern and outmoded industry and agriculture, both of which are increasingly dominated by the private sector. Recent administrations have expanded competition in ports, railroads, telecommunications, electricity generation, natural gas distribution and airports, with the aim of upgrading infrastructure. As an export-oriented economy, more than 90% of Mexican trade is under free trade agreements (FTAs) with more than 40 countries, including the European Union, Japan, Israel, and much of Central and South America. The most influential FTA is NAFTA, which came into effect in 1994, and was signed in 1992 by the governments of the United States, Canada and Mexico. In 2006, trade with Mexico's two northern partners accounted for almost 90% of its exports and 55% of its imports.^[6] Recently, the Congress of the Union approved important tax, pension and judicial reforms, and reform to the oil industry is currently being debated. Free trade is an economic concept referring to the selling of products between countries without tariffs or other trade barriers. ... For other uses, see Central America (disambiguation). ... Nafta or NAFTA may refer to: an acronym for the North American Free Trade Agreement an acronym for the New Zealand Australia Free Trade Agreement the town/Tokyo of Nafta, Tunisia This is a disambiguation page: a list of articles associated with the same title. ...

History

Main article: Economic history of Mexico

After five decades of political turbulence following the independence of Mexico, the four consecutive administrations of president Porfirio Díaz (during the last quarter of the nineteenth century) brought unprecedented economic growth. This growth was accompanied by foreign investment and European immigration, the development of an efficient railroad network and the exploitation of the country's natural resources. GDP per capita levels circa 1900 were on par with Argentina and Uruguay, almost three times that of Brazil and Venezuela.^[7] Annual economic growth between 1876 and 1910 averaged 3.3%.^[8] Political repression and fraud, as well as huge income inequalities exacerbated by the land distribution system based on latifundios, in which large haciendas were owned by a few but worked by millions of underpaid peasants living in precarious conditions, led to the Mexican Revolution (1910–1917), an armed conflict that drastically transformed Mexico's political, social, cultural, and economical structure during the twentieth century under a premise of social democracy. The war itself, however, left a harsh toll in the economy and population, which decreased over the 11-year period between 1910 and 1921. The reconstruction of the country was to take place in the following decades. // Independence The Mexican War of Independence (1810-21) left a legacy of economic stagnation that persisted until the 1870s. ... José de la Cruz Porfirio Díaz Mori (15 September 1830 – 2 July 1915) was a Mexican-American War volunteer, French Intervention hero, and President of Mexico. ... This is the top-level page of WikiProject trains Rail tracks Rail transport refers to the land transport of passengers and goods along railways or railroads. ... GDP redirects here. ... Latifundia are pieces of landed property covering tremendous areas. ... Hacienda is a Spanish word describing a vast ranch, common in the Pampa. ... One million (1,000,000), or one thousand thousand, is the natural number following 999,999 and preceding 1,000,001. ... This article is about the Mexican Revolution of 1910. ...

The period from 1930 to 1970 was dubbed by economic historians as the "Mexican Miracle", a period of economic growth spurred by a model of import substitution industrialization (ISI) which protected and promoted the development of national industries. Through the ISI model, the country experienced an economic boom through which industries rapidly expanded their production.^[9] Important changes in the economic structure included free land distribution to peasants under the concept of ejido, the nationalization of the oil and railroad companies, the introduction of social rights into the constitution, the birth of large and influential labor unions, and the upgrading of infrastructure. While population doubled from 1940 to 1970, GDP increased sixfold.^[10] Import substitution industrialization (also called ISI) is a trade and economic policy based on the premise that a country should attempt to substitute products which it imports, mostly finished goods, with locally produced substitutes. ... For the Venezuelan city, see Ejido, Mérida. ...

The ISI model had reached its peaked in the late 1960s. During the 1970s, the administrations of Echeverría and López Portillo, tried to include social development in their policies, an effort that entailed more public spending. With the discovery of vast oil fields in a time in which oil prices were surging and international interest rates were low -and even negative- the government decided to borrow from international capital markets to invest in the state-owned oil company, which in turn seemed to provide a long-run income source to promote social welfare. In fact, this method produced a remarkable growth in public expenditure,^[9] and president López Portillo announced that the time had come to learn to "manage prosperity"^[11] as Mexico multiplied its oil production to become the world's fourth largest exporter.^[12] Luis Echeverría Álvarez (born 17 January 1922) was the President of Mexico from 1970 to 1976. ... José López Portillo y Pacheco (June 16, 1920 – February 17, 2004) was the President of Mexico from 1976 to 1982. ...

In the period of 1981–1982 the international panorama changed abruptly: oil prices plunged and interest rates rose. In 1982, president López Portillo, just before ending his administration, suspended payments of foreign debt, devalued the peso and nationalized the banking system, along with many other industries that were severely affected by the crisis, among them the steel industry. While import substitution had produced an era of industrialization in previous decades, by the 1980s it was evident that that protracted protection had produced an uncompetitive industrial sector with low productivity gains.^[9] Image File history File links Lazaro_Cardenas. ... ISO 4217 Code MXN User(s) Mexico Inflation 3. ...

President de la Madrid was the first of a series of presidents that began to implement neoliberal reforms. After the crisis of 1982, lenders were unwilling to return to Mexico and, in order to keep the current account in balance, the government resorted to currency devaluations, which in turn sparked unprecedented inflation,^[9] which reached a historic high in 1987 at 159.7%.^[14] Miguel de la Madrid Hurtado (born December 12, 1934) was President of Mexico, representing the Institutional Revolutionary Party (PRI), from December 1, 1982 to December 1, 1988. ... For the school of international relations, see Neoliberalism in international relations. ...

The first step toward the liberalization of trade was Mexico's signature of GATT in 1986. During the Salinas administration many state-owned companies were privatized. In 1992, the North American Free Trade Agreement was signed between the United States, Canada and Mexico, and after the signature of two additional supplements on environments and labor standards, it came into effect on January 1, 1994. Salinas also introduced strict price controls and negotiated smaller minimum wage increments with labor unions with the aim of curbing inflation. While his strategy was successful in reducing inflation, growth averaged only 2.8 percent a year.^[9] Moreover, by fixing the exchange rate, the peso became rapidly overvalued while consumer spending increased, causing the current account deficit to reach 7% of GDP in 1994. The deficit was financed through tesobonos a type of public debt instrument that reassured payment in dollars.^[15] The Chiapas uprising, and the assassinations of the ruling party's presidential candidate, Luis Donaldo Colosio and the Secretary-General of the party and brother of the Assistant-Attorney General José Francisco Ruiz Massieu in 1994, sent a disquieting message to investors. Public debt holders rapidly sold their tesobonos, depleting the Central Bank's reserves,^[15] while portfolio investments, which had made up 90% of total investment flows, left the country as fast as they had come in.^[9] This unsustainable situation eventually forced the entrant Zedillo administration to abandon the fixed exchange rate. The peso sharply devalued and the country entered into an economic crisis in December 1994. The boom in exports, as well as an international rescue package crafted by American president Bill Clinton, helped cushion the crisis. In less than 18 months, the economy was growing again, and annual rate growth averaged 5.1 percent between 1995 and 2000.^[9] General Agreement on Tariffs and Trade (usually abbreviated GATT) functions as the foundation of the WTO trading system, and remains in force, although the 1995 Agreement contains an updated version of it to replace the original 1947 one. ... Carlos Salinas de Gortari (born April 3, 1948 in Mexico City) was President of Mexico from 1988 to 1994. ... NAFTA redirects here. ... is the 1st day of the year in the Gregorian calendar. ... Year 1994 (MCMXCIV) The year 1994 was designated as the International Year of the Family and the International Year of the Sport and the Olympic Ideal by the United Nations. ... The flag of the EZLN. The Zapatista Army of National Liberation (Ejército Zapatista de Liberación Nacional, EZLN) is an armed revolutionary group based in Chiapas, one of the poorest states of Mexico. ... Luis Donaldo Colosio Murrieta (10 February 1950 – 23 March 1994) was a Mexican politician who was assassinated during a stop on his presidential campaign. ... In Mexico the Attorney Generals Office (Spanish: Procuraduría General de la República) is an institution belonging to the Federal executive branch that is responsible of the investigation and prosecution of federal crimes. ... José Francisco Ruiz Massieu (July 22, 1946 – September 28, 1994) was a Mexican political figure. ... The 1994 economic crisis in Mexico, widely known as the Mexican peso crisis, was triggered by the sudden devaluation of the Mexican peso in the early days of the presidency of Ernesto Zedillo. ... William Jefferson Bill Clinton (born William Jefferson Blythe III[1] on August 19, 1946) was the 42nd President of the United States, serving from 1993 to 2001. ...

President Zedillo and president Fox continued with trade liberalization and during his administrations several FTAs were signed with Latin American and European countries, Japan and Israel, and both strove to maintain macroeconomic stability. Thus, Mexico became one of the most open countries in the world to trade, and the economy base shifted accordingly. Total trade with the United States and Canada tripled, and total exports and imports almost quadrupled between 1991 and 2003.^[16] The nature of foreign investment also changed from portfolio to foreign-direct investment (FDI). Ernesto Zedillo Ponce de León (born December 27, 1951) was President of Mexico from 1994 to 2000. ... Vicente Fox Quesada (born July 2, 1942) was the President of Mexico from 2000 to 2006. ...

Macroeconomic, financial and welfare indicators

Macroeconomic indicators
Mexican notes and coins
GDP (PPP)	US $1.134 trillion (2006)
GDP growth	4.8% (2006)
GDP per capita PPP	US $12,500 (2007)
GNI per capita PPP	US $11,990 (2006)
Inflation (CPI)	3% (2007)
Gini index	44.5
Unemployment	3.7% (2007)
HDI	▲ 0.829
Labor force	45.38 million (2007)
Pop. in poverty	13.8%

Image File history File linksMetadata No higher resolution available. ... GDP is an acronym which can stand for more than one thing: (in economics) an abbreviation for Gross Domestic Product. ... PPP of GDP for the countries of the world (2003). ... USD redirects here. ... PPP of GDP for the countries of the world (2003). ... PPP of GDP for the countries of the world (2003). ... It has been suggested that this article be split into multiple articles accessible from a disambiguation page. ... The Gini coefficient is a measure of inequality developed by the Italian statistician Corrado Gini and published in his 1912 paper Variabilità e mutabilità. It is usually used to measure income inequality, but can be used to measure any form of uneven distribution. ... CIA figures for world unemployment rates, 2006 Unemployment is the state in which a person is without work, available to work, and is currently seeking work. ... This page talks about Human Development Index, for other HDIs see HDI (disambiguation) World map indicating Human Development Index (2007). ...

Main indicators

Mexico's Gross Domestic Product (GDP) in purchasing power parity (PPP) was estimated at US $1.353 trillion in 2006, and $886.4 billion in nominal exchange rates.^[6] As such, its standard of living, as measured in GDP in PPP per capita was US $12,500. The World Bank reported in 2007 that the country's Gross National Income in market exchange rates was the second highest in Latin America, after Brazil at US $820.319 billion,^[17] which lead to the highest income per capita in the region at $7,830.^[18] As such, Mexico is now firmly established as an upper middle-income country. After the slowdown of 2001 the country has recovered and has grown 4.2, 3.0 and 4.8 percent in 2004, 2005 and 2006,^[19] even though it is considered to be well below Mexico's potential growth.^[15] GDP redirects here. ... PPP of GDP for the countries of the world (2003). ... One thousand million (1,000,000,000) is the natural number following 999,999,999 and preceding 1,000,000,001. ... Latin America consists of the countries of South America and some of North America (including Central America and some the islands of the Caribbean) whose inhabitants mostly speak Romance languages, although Native American languages are also spoken. ... Gross National Income (GNI) comprises the total value k produced within a country (i. ...

The Mexican currency is the peso (ISO 4217: MXN; symbol: $). One peso is divided into 100 centavos (cents). MXN replaced MXP in 1993 at a rate of 1000 MXP per 1 MXN. The exchanged rate has remained stable since 1998, oscillating between 9.20 and 11.50 MXN per USD. Interest rates in 2007 were situated at around 7 percent,^[20] having reached a historic low in 2002 below 5 percent. Inflation rates are also at historic lows; the inflation rate in Mexico in 2006 was 4.1 percent, and 3 percent by the end of 2007. Unemployment rates are the lowest of all OECD member countries at 3.2 percent. However, underemployment is estimated at 25 percent.^[6] Mexico's Human development index was reported at 0.829,^[21] (comprising a life expectancy index of 0.84, an education index of 0.86 and a GDP index of 0.77), ranking 52 in the world within the group of high-development. The peso is a unit of currency. ... ISO 4217 is the international standard describing three letter codes (also known as the currency code) to define the names of currencies established by the International Organization for Standardization (ISO). ... Wikipedia does not yet have an article with this exact name. ... $, the dollar sign, is primarily used to represent currencies: Many different dollars Many different pesos Different escudos The Brazilian real The Tongan paanga The Nicaraguan córdoba $ may also be: $ (film), also known as Dollars A sigil (computer programming) Category: ... USD redirects here. ... The Organization for Economic Co-operation and Development (OECD) is an international organization of those developed countries that accept the principles of representative democracy and a free market economy. ... This page talks about Human Development Index, for other HDIs see HDI (disambiguation) World map indicating Human Development Index (2007). ...

Poverty

After the 1994–1995 economic crisis, probably the most severe in the country's history, 50% of the population fell into poverty. A rapid growth in exports propitiated by NAFTA and other trade agreements, and the restructuring of the macroeconomic finances initiated during Zedillo's and continued during Fox's administration had significant results in the reduction of the poverty rate: according to the World Bank, poverty was reduced to 17.6% in 2004.^[22] Most of this reduction was achieved in rural communities whose rate of poverty declined from 42% to 27.9% in the 2000–2004 period, although urban poverty stagnated at 12%.^[22] According to the World Bank, in 2004, 17.6% of Mexico's population lived in extreme poverty, while 21% lived in moderated poverty.^[23] The CIA Factbook, on the other hand, reported that 13.8% of the population was under the poverty line, as measured in food-based poverty.^[24] The World Factbook is an annual publication by the Central Intelligence Agency of the United States with basic almanac-style information about the various countries of the world. ...

Remittances

Remittances, or contributions sent by Mexicans living abroad, mostly in the United States, to their families at home in Mexico, are a substantial and growing part of the Mexican economy; they comprised $18 billion in 2005.^[25] In 2004, they became the second largest source of foreign income after crude oil exports, roughly equivalent to foreign direct investment (FDI) and larger than tourism expenditures; and represented 2.5 percent of the nation's Gross Domestic Product.^[26] The growth of remittances has been remarkable: they have more than doubled since 1997. Recorded remittance transactions exceeded 41 million in 2003, of which 86 percent were made by electronic transfer.^[27] Remittance advertising in Oxford Street, London with Russian slogans. ... This article is about economics. ...

It is estimated that half or more of Mexican immigrants to the United States are legal, and have access to formal transfer channels usually blocked to illegals simply due to the lack of accepted identification documents. The Mexican government, cognizant of the economic viability of immigrant workers, began issuing an upgraded version of the Matrícula Consular de Alta Seguridad (MACS, High Security Consular Identification), an identity document issued at Mexican consulates abroad. This document is now accepted as a valid identity card in 32 US states, as well as thousands of police agencies, hundreds of cities and counties, as well as banking institutions.^[27] Mexican people redirects here. ...

The main receptors of remittances in 2004 were the states of Michoacán, Guanajuato, Jalisco, Mexico and Puebla, which jointly captured 45% of total remittances in that year.^[26] Several state governments, with the support of the federal government, have implemented programs to use part of the remittances to finance public works. This program, called Dos por Uno (Two for every one) is designed in a way that for each peso contributed by migrants from their remittances, the state and the federal governments will invest two pesos in building infrastructure at their home communities.^[28] Location within Mexico Municipalities of Michoacán Country Mexico Capital Municipalities 113 Government  - Governor Leonel Godoy (PRD)  - Federal Deputies PRD: 8 PAN: 4  - Federal Senators Jesús Garibay García (PRD) Silvano Aureoles Conejo (PRD) Marko A. Cortés (PAN) Area Ranked 16th  - Total 59,928 km² (23,138. ... Guanajuato is a state in the central highlands of Mexico. ... Location within Mexico Country Capital Municipalities 126 Largest City Guadalajara Government  - Governor Emilio González Márquez (PAN)  - Federal Deputies PAN: 18 PRI: 1  - Federal Senators Eva Contreras (PAN) Héctor Pérez (PAN) Ramiro Hernández (PRI) Area Ranked 6th  - State 30,534. ... Location within Mexico Country Capital Municipalities 126 Largest City Ecatepec Government  - Governor Enrique Peña Nieto (PRI)  - Federal Deputies PRI: 7 PAN: 11 PRD: 20 Convergencia: 2  - Federal Senators Yeidckol Polevnsky (PRD) Héctor Bautista (PRD) Ulises Ramírez (PAN) Area Ranked 25th  - Total 21,355 km² (8,245. ... The Mexican state of Puebla is located in the center of the country, to the east of Mexico City. ...

Regional economies

Map of Mexican states indicating HDI (2004)       0.80 and higher       0.750–0.799       0.70–0.749

Regional disparities and income inequality continue to be a problem in Mexico. While all constituent states of the federation have a Human Development Index (HDI) superior to 0.70 (medium to high development), northern and central states have higher levels of HDI than the southern states. Nuevo León and the Federal District have HDI levels similar to European countries, whereas that of Oaxaca and Chiapas is similar to that of Syria or Egypt.^[29] At the municipal level, disparities are even greater: San Pedro Garza García in Nuevo León has an HDI similar to that of Italy, whereas, Metlatonoc in Guerrero, would have an HDI similar to that of Malawi. The majority of the federal entities with high development (superior to 0.80) are located in the northern region (with the exception of Colima, Jalisco, Aguascalientes, the Federal District, Querétaro, as well as the southeastern states of Quintana Roo and Campeche). The less developed states (with medium development in terms of HDI, superior to 0.70) are located at the southern Pacific coast (with the exception of Veracruz). Image File history File links Mexico_HDI_states. ... Image File history File links Mexico_HDI_states. ... The United Mexican States are a federation made up by thirty-one free and sovereign states. ... Location within Mexico Country Mexico Capital Municipalities 51 Largest City Monterrey Government  - Governor Natividad González Parás  - Federal Deputies PAN: 7 PRI: 5  - Federal Senators PAN :2 PRI: 1 Area Ranked 13th  - Total 64,210 km² (24,791. ... Nickname: Location of Mexico City Coordinates: , Country Federal entity Boroughs The 16 delegaciones Founded c. ... Catedral de Santo Domingo The Free and Sovereign State of Oaxaca or simply Oaxaca   is one of the 31 states of Mexico, located in the southern part of Mexico, west of the Isthmus of Tehuantepec. ... Location within Mexico Municipalities of Chiapas Country Mexico Capital Municipalities 118 Largest City Tuxtla Gutiérrez Government  - Governor Juan José Sabines Guerrero (PRD)  - Federal Deputies PRI: 7 PRD: 5  - Federal Senators PRI: 1 PRD: 1 PVEM: 1 Area Ranked 8th  - Total 74,211 km² (28,653 sq mi) Population (2005... San Pedro Garza García, commonly referred to as either San Pedro or Garza García, is a residential and commercial suburb of the larger metropolitan city of Monterrey, Nuevo León, Mexico. ... Location within Central America Country Mexico Capital Municipalities 76 Largest City Acapulco Government  - Governor Carlos Zeferino Torreblanca Galindo (PRD)  - Federal Deputies PRD: 9  - Federal Senators PRD: 2 PRI: 1 Area Ranked 14th  - Total 64,281 km² (24,819 sq mi) Population (2005)  - Total 3,115,202(Ranked 11th) Time zone... The United Mexican States are a federation made up by thirty-one free and sovereign states. ... Location within Mexico Country  Mexico Capital Colima Municipalities 10 Largest City Manzanillo Government  - Governor Jesus Silverio Cavazos Ceballos (PRI)  - Federal Deputies PAN: 2  - Federal Senators PAN: 2 PRI: 1 Area Ranked 29th  - State 5,191 km²  (2,004. ... Aguascalientes IPA: is a state of Mexico, situated in the center of the country. ... Querétaro (formal name: Querétaro Arteaga) is a state in central Mexico. ... Quintana Roo is a state of Mexico, on the eastern part of the Yucatán Peninsula. ... Location within Mexico Country Capital Municipalities 11 Largest City San Francisco de Campeche Government  - Governor Jorge Carlos Hurtado Valdez (PRI)  - Federal Deputies PRI:2  - Federal Senators PRI:2 PAN:1 Area Ranked 18th  - State 50,812 km²  (19,618. ... Location within Mexico Country Capital Municipalities 212 Largest City Veracruz Government  - Governor Fidel Herrera Beltrán (PRI)  - Federal Deputies PRI: 6 PAN: 11 PRD: 2 Convergencia: 2  - Federal Senators PRD: 1 PAN: 1 Convergencia: 1 Area Ranked 11th  - Total 71,699 km² (27,683. ...

In terms of share in GDP per sector (in 2004), the largest contributors in agriculture are Jalisco (9.7%), Sinaloa (7.7%) and Veracruz (7.6%); the greatest contributors in industrial production are the Federal District (15.8%), State of México (11.8%) and Nuevo León (7.9%); the greatest contributors in the service sector are also the Federal District (25.3%), State of México (8.9%) and Nuevo León (7.5%).^[30] Location within Mexico Municipalities of Sinaloa Country Mexico Capital Municipalities 18 Government  - Governor Jesús Alberto Aguilar Padilla  - Federal Deputies PRI: 6 PAN: 2  - Federal Senators PRI: 2 PAN: 1 Area Ranked 18th  - Total 58,238 km² (22,485. ... The United Mexican States, or Mexico, is a federal republic, comprising 31 states. ...

Since the 1980s, the economy has slowly become less centralized; the annual rate of GDP growth of the Federal District from 2003–2004 was the smallest of all federal entities at a mere 0.23%, with drastic drops in the agriculture and industrial sectors. Nonetheless, it still accounts for 21.8% of the nation's GDP. The states with the highest GDP growth rates are Quintana Roo (9.04%), Baja California (8.89%), and San Luis Potosí (8.18%).^[31] In 2000, the federal entities with the highest GDP per capita in Mexico were the Federal District (US $17,696), Campeche (US $13,153) and Nuevo León (US $13,033); the states with the lowest GDP per capita were Chiapas (US $3,302), Oaxaca (US $3,489) and Guerrero (US $4,112).^[32] Location within Mexico Municipalities of Baja California Country Capital Municipalities 5 Largest City Tijuana Government  - Governor José Guadalupe Osuna Millán (PAN)  - Federal Deputies PAN: 8  - Federal Senators Alejandro González (PAN) Rafael Díaz (PAN) Fernando Castro (PRI) Area Ranked 12th  - Total 69,921 km² (26,996. ... The Mexican state of San Luis Potosí has an area of 62,848 km² (24,266 mi²). It is in the north-central part of the Mexican republic, bordered by the states of Jalisco, Guanajuato, Querétaro, Hidalgo, Veracruz, Tamaulipas, Nuevo León, Coahuila, and Zacatecas. ...

Components of the economy

Gross Domestic Product (GDP) in purchasing power parity (PPP) in 2006 was estimated at US $1.134 trillion, and GDP per capita in PPP at US $10,600.^[6] The service sector is the largest component of GDP at 70.5%, followed by the industrial sector at 25.7% (2006 est.). Agriculture represents only 3.9% of GDP (2006 est.). Mexican labor force is estimated at 38 million of which 18% is occupied in agriculture, 24% in the industry sector and 58% in the service sector (2003 est.). PPP of GDP for the countries of the world (2003). ...

Agriculture and food production

History

Food and agriculture
Farmers in Puebla
Product	Quantity (Tm)	World Rank1
Avocados	1,040,390	1
Onions and chayote	1,130,660	1
Limes and lemons	1,824,890	1
Safflower seed	212,765	1
Dry fruits	95,150	2
Papaya	955,694	2
Chillies and peppers	1,853,610	2
Whole beans	93 000	3
Oranges	3,969,810	3
Anise, badian, fennel	32 500	3
Chicken meat	2,245,000	3
Asparagus	67,247	4
Mangoes	1.503.010	4
Corn	20,000,000	4
1Source:FAO[33]

After the Mexican Revolution Mexico began an agrarian reform, based on the 27th article of the Mexican Constitution than included transfer of land and/or free land distribution to peasants and small farmers under the concept of the ejido.^[34] This program was further extended during president Cárdenas administration during the 1930s^[35] and continued into the 1960s at varying rates.^[36] The cooperative agrarian reform, which guaranteed small farmers a means of subsistence livelihood, also caused land fragmentation and lack of capital investment, since commonly held land could not be used as collateral. In an effort to raise rural productivity and living standards, this constitutional article was amended in 1992 to allow for the transfer of property rights of the communal lands to farmers cultivating it.^[37] With the ability to rent or sell it, a way was open for the creation of larger farms and the advantages of economies of scale. Large mechanized farms are now operating in some northeastern states (mainly in Sinaloa). However, privatization of ejidos continues to be very slow in the central and southern states where the great majority of peasants produce only for subsistence. Image File history File links Download high resolution version (1365x951, 618 KB) Farmers in their fields Men gather to talk after a day tending their fields in the state of Puebla, Mexico Source: http://www. ... The Mexican state of Puebla is located in the center of the country, to the east of Mexico City. ... A tonne (also called metric ton) is a non-SI unit of mass, accepted for use with SI, defined as: 1 tonne = 103 kg (= 106 g). ... This article is about the Mexican Revolution of 1910. ... Before the 1910 Mexican Revolution that overthrew Porfirio Díaz most of the land was owned by a single elite ruling class. ... This article is about the current Political Constitution of the United Mexican States. ... In a detail of Brueghels Land of Cockaigne (1567) a soft-boiled egg has little feet to rush to the luxuriating peasant who catches drops of honey on his tongue, while roast pigs roam wild: in fact, hunger and harsh winters were realities for the average European in the... For the Venezuelan city, see Ejido, Mérida. ... This article is about Gen. ... Location within Mexico Municipalities of Sinaloa Country Mexico Capital Municipalities 18 Government  - Governor Jesús Alberto Aguilar Padilla  - Federal Deputies PRI: 6 PAN: 2  - Federal Senators PRI: 2 PAN: 1 Area Ranked 18th  - Total 58,238 km² (22,485. ...

Up until the 1990s, the government encouraged the production of basic crops (mainly corn and beans) by maintaining support prices and controlling imports through the National Company for Popular Subsistence (CONASUPO). With trade liberalization, however, CONASUPO was to be gradually dismantled and two new mechanisms were implemented: Alianza and Procampo. Alianza provides income payments and incentives for mechanization and advanced irrigation systems. Procampo is an income transfer subsidy to farmers. This support program provides 3.5 million farmers who produce basic commodities (mostly corn), and which represent 64% of all farmers, with a fixed income transfer payment per unit of area of cropland. This subsidy increased substantially during president Fox's administration, mainly to white corn producers in order to reduce the amount of imports from the United States. This program has been successful, and in 2004, roughly only 15% of corn imports are white corn –the one used for human consumption and the type that is mostly grown in Mexico– as opposed to 85% of yellow and crashed corn –the one use for feeding livestock, and which is barely produced in Mexico.^[38] This article is about the maize plant. ... This article is on the plant. ... Sheep are commonly bred as livestock. ...

Importance of the Agriculture to Mexico's economy

Agriculture, as a percentage of GDP, has been steadily declining, and now resembles that of developed nations, in that it plays a smaller role in the economy. In 2006, agriculture accounted for only 3.9% of GDP,^[6] down from 7% in 1980,^[39] and 25% in 1970.^[40] Nonetheless, given the historic structure of ejidos, it still employs a considerably high percentage of the work force: 18% in 2003,^[6] mostly of which grows basic crops for subsistence, compared to 2–5% in developed nations in which production is highly mechanized. A developed country is a country that is technologically advanced and that enjoys a relatively high standard of living. ...

Crops

In spite of being a staple in Mexican diet, Mexico's comparative advantage in agriculture is not in corn, but in horticulture, tropical fruits, and vegetables. Negotiators of NAFTA expected that through liberalization and mechanization of agriculture two-thirds of Mexican corn-producers would naturally shift from corn production to horticultural and other labor-intensive crops such as fruits, nuts, vegetables, coffee and sugar cane.^[41] While horticultural trade has drastically increased due to NAFTA, it has not absorbed displaced workers from corn production (estimated at around 600,000).^[38] Moreover, corn production has remained stable (at 20 million metric tons), arguably, as a result of income support to farmers, or a reticence to abandon a millenarian tradition in Mexico: not only have peasants grown corn for millennia, corn originated in Mexico. Even today, Mexico is still the fourth largest corn producer in the world.^[33] Binomial name L. Corn (Zea mays L. ssp. ... Horticulture (pronounced or US [1]) is the art and science of the cultivation of plants. ... For other uses, see Coffee (disambiguation). ... Species Ref: ITIS 42058 as of 2004-05-05 Sugarcane is one of six species of a tall tropical southeast Asian grass (Family Poaceae) having stout fibrous jointed stalks whose sap at one time was the primary source of sugar. ... A tonne (also called metric ton) is a non-SI unit of mass, accepted for use with SI, defined as: 1 tonne = 103 kg (= 106 g). ...

The area dedicated to potatoes has changed little since 1980 and average yields have almost tripled since 1961. Production has reached a record 1.7 million tonnes in 2003. Per capita consumption of potato in Mexico stands at 17 kg a year, very low compared to its maize intake of 400 kg^[42]. On average, potato farms in Mexico are larger than those devoted to more basic food crops. Potato production in Mexico is mostly for commercial purposes; the production for household consumption is very small.^[43]

Approximately 160,000 small- and medium-sized farmers grow sugar cane in 15 Mexican states, currently there are 57 sugar mills around the country. Mexico's sugar industry is characterized by high production costs and lack of investment. Mexico produces more sugar than it consumes.^[44] Two sugar beets - the one on the left has been cultivated to be smoother than the traditional beet, so that it traps less soil. ...

Industry

The industrial sector as a whole has benefited from trade liberalization; in 2000 it accounted for almost 90% of all export earnings.^[16] Among the most important industrial manufacturers in Mexico is the automotive industry, whose standards of quality are internationally recognized. The automobile sector in Mexico differs from that in other Latin American countries and developing nations in that it does not function as a mere assembly manufacturer. The industry produces technologically complex components and engages in some research and development activities.^[16] The "Big Three" (General Motors, Ford and Chrysler) have been operating in Mexico since the 1930s, while Volkswagen and Nissan built their plants in the 1960s.^[45] Now, Toyota, Honda, BMW, and Mercedes-Benz joined in. Given the high requirements of North American components in the industry, many European and Asian parts suppliers have also moved to Mexico: in Puebla alone, 70 industrial part-makers cluster around Volkswagen.^[16] The relatively small domestic car industry still is represented by DINA Camiones S.A. de C.V., that has built buses and trucks for almost half a century and the new car company Mastrettadesign that builds the race car Mastretta MXT. A developing country is a country with low average income compared to the world average. ... General Motors Corporation, also known as GM, is a multinational corporation headquartered in the United States and has been the worlds largest and most dominant automaker since 1931 till the second half of 2007, surpassed by Toyota; as well as the global industry sales leader for 77 years. ... Ford may mean a number of things: A ford is a river crossing. ... For other uses, including the Chrysler Brand, see Chrysler (disambiguation). ... VW redirects here. ... Nissan Motor Co. ... Toyota Motor Corporation ) is a multinational corporation headquartered in Japan, and currently is the worlds largest automaker. ... This article is about the Japanese motor corporation. ... For other uses, see BMW (disambiguation). ... This page is about the Mercedes-Benz brand of automobiles and trucks from the DaimlerChrysler automobile manufacturer. ... Nickname: Location of Puebla in central Mexico Coordinates: Country Mexico State Puebla Founded 1531 Government  - Mayor Enrique Doger (PRI) Area  - City 546 km²  (211 sq mi) Elevation 2,175 m (7,136 ft) Population (2005)  - City 1,485,941  - Density 5,741/km² (14,869. ...

Some large industries of Mexico include Cemex, the third largest cement conglomerate in the world;^[46] the alcohol beverage industries, including world-renowned players like Grupo Modelo; conglomerates like FEMSA, which apart from owning breweries and the OXXO convenience store chain, is also the second-largest Coca-Cola bottler in the world; Gruma, the largest producer of corn flour and tortillas in the world; and Grupo Bimbo, Telmex, Televisa, among many others. In 2005, according to the World Bank, high-tech industrial production represented 19.6% of total exports.^[47] Cemex SA de CV (NYSE: CX) is the worlds third largest manufacturer of cement[1] and the worlds leading supplier of ready-mix concrete. ... For other uses, see Cement (disambiguation). ... A bottle of Corona Grupo Modelo is a large brewery in Mexico. ... Fomento Económico Mexicano, S.A. (FEMSA) is a company based in Monterrey, Mexico. ... This page is for the Mexican convenience store chain. ... The wave shape (known as the dynamic ribbon device) present on all Coca-Cola cans throughout the world derives from the contour of the original Coca-Cola bottles. ... Gruma SAB de CV (NYSE: GMK, BMV: Gruma) is the largest manufacturer of corn flour and tortillas in the world[1]. Its brand names include Maseca, Mission (or Misión, in Mexico), and Guerrero. ... Grupo Bimbos Logo Grupo Bimbo is a giant Mexican food corporation with brands in Latin America, Europe and the United States. ... Teléfonos de México S.A.B. de C.V. (NYSE: TMX), better known as Telmex, is a Mexican telecommunications company that provides telecommunication products and services in Mexico and in many parts of Latin America, such as Argentina, Brazil, Chile, Colombia, Peru and even in the United States. ... For the article on the defunct Venezuelan television channel, see Televisa Venezuela. ...

Maquiladoras (Mexican factories which take in imported raw materials and produce goods for export) have become the landmark of trade in Mexico. This sector has benefited from NAFTA, in that real income in the maquiladora sector has increased 15.5% since 1994, though from the non-maquiladora sector has grown much faster.^[15] Contrary to popular belief, this should be no surprise since maquiladora's products could enter the US duty free since the 1960s industry agreement. Other sectors now benefit from the free trade agreement, and the share of exports from non-border states has increased in the last 5 years while the share of exports from maquiladora-border states has decreased. A maquiladora or maquila is a factory that imports materials and equipment on a duty-free and tariff-free basis for assembly or manufacturing and then re-exports the assembled product, usually back to the originating country. ...

Currently Mexico is focusing in developing an aerospace industry and the assembly of helicopter and regional jet aircraft fuselages is taking place. Foreign firms such as MD Helicopters and Bombardier build helicopter and regional jets fuselages respectively in Mexico. Although the Mexican aircraft industry is mostly foreign, as is its car industry, Mexican firms have been founded such as Aeromarmi, which builds light propeller airplanes, and Hydra Technologies, which builds Unmanned Aerial Vehicles such as the S4 Ehécatl. MD Helicopters is an aerospace company that produces helicopters primarily for commerical use. ... For other uses, see Bombardier (disambiguation). ... An RQ-2 Pioneer, a reconnaissance UAV used by the US military during the Gulf and Iraq Wars. ... Image:Ehecatl1. ...

Energy and mineral resources

Mineral resources are the "nation's property" (i.e. public property) by constitution. As such, the energy sector is administered by the government with varying degrees of private investment. Mexico is the sixth-largest oil producer in the world, with 3.7 million barrels per day.^[48] Pemex, the public company in charge of administering research, exploitation and sales of oil, is the largest company (oil or otherwise) in Latin America, making US $86 billion in sales a year,^[49] a sum larger than the GDP of some of the region's countries. Nonetheless, the company is heavily taxed, a significant source of revenue for the government, of almost 62 per cent of the company's sales.^[9] Without enough money to continue investing in finding new sources or upgrading infrastructure, and being protected constitutionally from private and foreign investment, some have predicted the company may face institutional collapse.^[9] While the oil industry is still relevant for the government's budget, its importance in GDP and exports has steadily fallen since the 1980s. In 1980 oil exports accounted for 61.6% of total exports; by 2000 it was only 7.3%.^[16] A Pemex gas station in Puerto Vallarta Petróleos Mexicanos (PEMEX) is Mexicos state-owned, nationalized petroleum company. ... Latin America consists of the countries of South America and some of North America (including Central America and some the islands of the Caribbean) whose inhabitants mostly speak Romance languages, although Native American languages are also spoken. ...

Services

Overview

The service sector was estimated to account for 70.5% of the country's GDP, and employs 58% of the active population.^[6] This section includes transportation, commerce, warehousing, restaurant and hotels, arts and entertainment, health, education, financial and banking services, telecommunications as well as public administration and defense. Mexico's service sector is strong, and in 2001 replaced Brazil's as the largest service sector in Latin America in dollar terms.^[50]

Tourism

Tourism is one of the most important industries in Mexico. It is the fourth largest source of foreign exchange for the country.^[27] Mexico is the eight most visited country in the world (with over 20 million tourists a year).^[51] Tourist redirects here. ...

Financial sector

Banking system

According to the IMF the Mexican banking system is strong, in which private banks are profitable and well-capitalized.^[52] The financial and banking sector is increasingly dominated by foreign companies or mergers of foreign and Mexican companies with the notable exception of Banorte. The acquisition of Banamex, one of the oldest surviving financial institutions in Mexico, by Citigroup was the largest US-Mexico corporate merger, at US $12.5 billion.^[53] In spite of that, the largest financial institution in Mexico is Bancomer associated to the Spanish BBVA.^[54] IMF redirects here. ... Banorte or Banco Mercantil del Norte is a major bank in Mexico, based in Monterrey. ... Banco Nacional de México or Banamex is Mexicos largest bank, belonging to the group that bears its name, Grupo Financiero Banamex. ... Citi redirects here. ... BBVA Bancomer is the largest financial institution in Mexico, dominating about 20% of the market. ... (NYSE: BBV). ...

The process of institution building in the financial sector in Mexico has evolved hand in hand with the efforts of financial liberalization and of inserting the economy more fully into world markets.^[55] Over the recent years, there has been a wave of acquisitions by foreign institutions such as US-based Citigroup, Spain’s BBVA and the UK’s HSBC. Their presence, along with a better regulatory framework, has allowed Mexico’s banking system to recover from the 1994–95 peso devaluation. Lending to the public and private sector is increasing and so is activity in the areas of insurance, leasing and mortgages.^[56] However, bank credit accounts for only 22% of GDP, which is significantly low compared to 70% in Chile.^[57] Credit to the Agricultural sector has fallen 45.5% in six years (2001 to 2007), and now represents about 1% of total bank loans.^[58] Other important institutions include savings and loans, credit unions, government development banks, “non-bank banks”, bonded warehouses, bonding companies and foreign-exchange firms.^[56]

A wave of acquisitions has left Mexico’s financial sector in foreign hands. Their foreign-run affiliates compete with independent financial firms operating as commercial banks, brokerage and securities houses, insurance companies, retirement-fund administrators, mutual funds, and leasing companies. Other important institutions include savings and loans, credit unions, government development banks, “non-bank banks”, bonded warehouses, bonding companies and foreign-exchange firms.^[59]

Securities market

Mexico has a single securities market, the Mexican Stock Exchange (Bolsa Mexicana de Valores, known as the Bolsa). The market has grown steadily, with its main indices increasing by more than 150% in 2003–05. It is Latin America's second largest exchange, after Brazil's. Still, the Bolsa remains relatively small when compared to other North American exchanges. The New York Stock Exchange is about 100 times larger; the Toronto Stock Exchange is six times larger. The Bolsa Mexicana de Valores or BMV is Mexicos main stock exchange. ...

The Indice de Precios y Cotizaciones (IPC, the general equities index) is the benchmark stock index on the Bolsa. In 2005 the IPC surged 37.8%, to 17,802.71 from 12,917.88, backed by a stronger Mexican economy and lower interest rates. It continued its steep rise through the beginning of 2006, reaching 19,272.63 points at end-March 2006. The stockmarket also posted a record low vacancy rate, according to the central bank. Local stockmarket capitalisation totalled US$236bn at end-2005, up from US$170bn at end-2004. As of March 2006 there were 135 listed companies, down from 153 a year earlier. Only a handful of the listed companies are foreign. Most are from Mexico City or Monterrey; companies from these two cities compose 67% of the total listed companies. The Indice de Precios y Cotizaciones (IPC) is an index of 35 stock that trade on the Bolsa Mexicana de Valores. ... Nickname: Location of Mexico City Coordinates: , Country Federal entity Boroughs The 16 delegaciones Founded c. ... Nickname: Motto: El Trabajo templa el Espíritu Location of Monterrey in northern Mexico Coordinates: , Country State Founded 20 September 1596 Government  - Mayor Adalberto Madero ( PAN) Area  - City 860 km² (332 sq mi) Elevation 537 m (1,762 ft) Population (2005)  - City 1,133,814  - Density 1,989/km² (5...

The IPC consists of a sample of 35 shares weighted according to their market capitalisation. Heavy hitters are America Telecom, the holding company that manages Latin America’s largest mobile company, América Móvil; Telefonos de Mexico, Mexico’s largest telephone company; Grupo Bimbo, Mexico and Latin America’s biggest baker; and Wal-Mart de México, a subsidiary of the US retail giant. The makeup of the IPC is adjusted every six months, with selection aimed at including the most liquid shares in terms of value, volume and number of trades. América Móvil (NYSE: AMX, BMV: AMX, NASDAQ: AMOV) is the largest mobile network operator in Germano America and Latin America and the largest corporation in Latin America. ... Teléfonos de México S.A.B. de C.V. (NYSE: TMX), better known as Telmex, is a Mexican telecommunications company that provides telecommunication products and services in Mexico and in many parts of Latin America, such as Argentina, Brazil, Chile, Colombia, Peru and even in the United States. ... Grupo Bimbos Logo Grupo Bimbo is a giant Mexican food corporation with brands in Latin America, Europe and the United States. ... Walmex, or Wal-Mart de Mexico, is a Latin American blue-chip company, a majority of which is owned by the American retail giant Wal-Mart Stores, Inc. ...

Mexico’s stockmarket is closely linked to developments in the US. Thus, volatility in the New York and Nasdaq stock exchanges, as well as interest-rate changes and economic expectations in the US, can steer the performance of Mexican equities. This is both because of Mexico’s economic dependence on the US and the high volume of trading in Mexican equities through American Depositary Receipts (ADRs). Currently, the decline in the value of the dollar is making non-US markets, including Mexico's, more attractive.

Despite the recent gains, investors remain wary of making placements in second-tier initial public offerings (IPOs). Purchasers of new issues were disappointed after prices fell in numerous medium-sized companies that made offerings in 1996 and 1997. IPO activity in Mexico remains tepid and the market for second-tier IPOs is barely visible. There were three IPOs in 2005.^[60]

Government policies and the Central Bank

Banco de México is Mexico's central bank, an internally autonomous public institution whose governor is appointed by the president and approved by the legislature to which it is fully responsible. Banco de México's functions are outlined in the 28th article of the constitution and further expanded in the Monetary Law of the United Mexican States.^[61] Banco de México's main objective is to achieve stability in the purchasing power of the national currency. It is also the lender of last resort. Image File history File links Size of this preview: 800 × 442 pixel Image in higher resolution (825 × 456 pixel, file size: 358 KB, MIME type: image/jpeg) Foto tomada por el wikipedista propio. ... The Banco de México (Spanish: Bank of Mexico), abbreviated BdeM or Banxico, is Mexicos central bank. ... The President of the United Mexican States is the head of state of Mexico. ...

Currency policy

Mexico has had a floating exchange-rate regime since the December 1994 peso devaluation. Under this system, Banco de México makes no commitment to the level of the peso exchange rate, although it does employ an automatic mechanism to accumulate foreign reserves. It also possesses tools aimed at smoothing out volatility. The Exchange Rate Commission sets policy; it is made up of six members—three each from the Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Publico—SHCP) and the central bank, with the SHCP holding the deciding vote.

In August 1996, Banco de México initiated a mechanism to acquire foreign reserves when the peso is strong, without giving the market signals about a target range for the exchange rate. The resulting high levels of reserves, mostly from petroleum revenues, have helped to improve the terms and conditions on debt Mexico places on foreign markets. However, there is concern that the government relies too heavily on oil income in order to build a healthy base of reserves. According to the central bank, international reserves stood at US $75.8 billion in 2007.^[62] In May 2003, Banco de México launched a program that sells U.S. dollars via a monthly auction, with the goal of maintaining a stable, but moderate, level of reserves.

Monetary system

Mexico’s monetary policy was revised following the 1994–95 financial crisis, when officials decided that maintaining general price stability was the best way to contribute to the sustained growth of employment and economic activity. As a result, Banco de México has as its primary objective maintaining stability in the purchasing power of the peso. It sets an inflation target, which requires it to establish corresponding quantitative targets for the growth of the monetary base and for the expansion of net domestic credit.

The central bank also monitors the evolution of several economic indicators, such as the exchange rate, differences between observed and projected inflation, the results of surveys on the public and specialists’ inflation expectations, revisions on collective employment contracts, producer prices, and the balances of the current and capital accounts.

A debate continues over whether Mexico should switch to a US-style interest rate-targeting system. Government officials in favor of a change say that the new system would give them more control over interest rates, which are becoming more important as consumer credit levels rise.

Until 2008, Mexico used a unique system, amongst the OECD countries,^[56] to control inflation in a mechanism known as the corto (lit. "shortage") a mechanism that allowed the central bank to influence market interest rates by leaving the banking system short of its daily demand for money by a predetermined amount. If the central bank wanted to push interest rates higher, it increased the corto. If it wished to lower interest rates, it decreased the corto. Starting in 2008, the Central Bank will set a referential interest rate, like the Federal Reserve Bank; nonetheless the transition period will include the use of the corto in certain circumstances.^[63] Federal Reserve Districts The United States Federal Reserve System consists of twelve Federal Reserve Banks, each responsible for a particular district, and some with branches. ...

Trade

International trade
World Trade Center in Mexico City
Exports	US $248.8 billion f.o.b. (2006)
Imports	US $253.1 billion f.o.b. (2006)
Current account	▼ US $400.1 million (2006)
Export partners	US 90.9%, Canada 2.2%, Spain 1.4%, Germany 1.3%, Colombia 0.9% (2006)
Import partners	US 53.4%, China 8%, Japan 5.9% (2005)

Mexico is an export oriented economy. It is an important trade power as measured by the value of merchandise traded, and the country with the greatest number of free trade agreements.^[64] In 2005, Mexico was the world's fifteenth largest merchandise exporter and twelfth largest merchandise importer with a 12% annual percentage increase in overall trade.^[65] In fact, from 1991 to 2005 Mexican trade increased fivefold.^[66] Mexico is the biggest exporter and importer in Latin America; in 2005, Mexico alone exported US $213.7 billion, roughly equivalent to the sum of the exports of Brazil, Argentina, Venezuela, Uruguay, and Paraguay.^[65] However, Mexican trade is fully integrated with that of his North American partners: close to 90% of Mexican exports and 50% of its imports are traded with the United States and Canada. Nonetheless, NAFTA has not produced trade diversion.^[15] While trade with the United States increased 183% from 1993–2002, and that with Canada 165%, other trade agreements have shown even more impressive results: trade with Chile increased 285%, with Costa Rica 528% and Honduras 420%.^[16] Trade with the European Union increased 105% over the same time period.^[16] Image File history File linksMetadata Size of this preview: 450 × 600 pixel Image in higher resolution (1704 × 2272 pixel, file size: 1. ...

Free trade agreements

Mexico joined GATT in 1986, and today is an active and constructive participant of the World Trade Organization. Fox's administration promoted the establishment of a Free Trade Area of the Americas; Puebla served as temporary headquarters for the negotiations, and several other cities are now candidates for its permanent headquarters if the agreement is reached and implemented. General Agreement on Tariffs and Trade (usually abbreviated GATT) functions as the foundation of the WTO trading system, and remains in force, although the 1995 Agreement contains an updated version of it to replace the original 1947 one. ... -1... The FTAA logo. ... Nickname: Location of Puebla in central Mexico Coordinates: Country Mexico State Puebla Founded 1531 Government  - Mayor Enrique Doger (PRI) Area  - City 546 km²  (211 sq mi) Elevation 2,175 m (7,136 ft) Population (2005)  - City 1,485,941  - Density 5,741/km² (14,869. ...

Mexico has signed 12 free trade agreements with 44 countries: Free trade is an economic concept referring to the selling of products between countries without tariffs or other trade barriers. ...

• NAFTA (1994) with the United States and Canada;
• Grupo de los tres, Group of the three [countries], or G-3 (1995) with Colombia and Venezuela; the latter decided to terminate the agreement in 2006; Mexico announced its intention to invite Ecuador, Peru or Panama as a replacement;
• Free Trade Agreement with Costa Rica (1995);
• Free Trade Agreement with Bolivia (1995);
• Free Trade Agreement with Nicaragua (1998);

Countries with which Mexico has signed an FTA

• Free Trade Agreement with Chile (1999);
• Free Trade Agreement with the European Union (2000);
• Free Trade Agreement with Israel (2000);
• TN Free Trade Agreement (2001), with Guatemala, El Salvador and Honduras;
• Free Trade Agreement with the European Association of Free Trade, integrated by Iceland, Norway, Liechtenstein and Switzerland (2001);
• Free Trade Agreement with Uruguay (2004); and
• Free Trade Agreement with Japan (2005)

Mexico has shown interest in becoming an associate member of Mercosur.^[67] The Mexican government has also started negotiations with South Korea, Singapore and Peru.^[68], and also Mexico have interested with Australia to start negotiations for a trade agreement between the two countries. Nafta or NAFTA may refer to: an acronym for the North American Free Trade Agreement an acronym for the New Zealand Australia Free Trade Agreement the town/Tokyo of Nafta, Tunisia This is a disambiguation page: a list of articles associated with the same title. ... The G-3 is a free trade agreement between Colombia, Mexico and Venezuela that came into effect on January 1, 1995, creating an extended market of 149 million consumers with a combined GDP of US$486. ... Image File history File links Size of this preview: 800 × 352 pixel Image in higher resolution (1427 × 628 pixel, file size: 40 KB, MIME type: image/png) Mexico was signed 12 free trade agreements (FTA) with the 43 countries highlighted in blue in this map. ... Image File history File links Size of this preview: 800 × 352 pixel Image in higher resolution (1427 × 628 pixel, file size: 40 KB, MIME type: image/png) Mexico was signed 12 free trade agreements (FTA) with the 43 countries highlighted in blue in this map. ... Motto (Spanish) (Portuguese) (Guaraní) Our North is the South  â€¢  â€¢ Pro Tempore Secretariat Montevideo, Uruguay , Largest city São Paulo, Brazil Official languages 3 Portuguese Spanish Guaraní Membership 5 Argentina Brazil Paraguay Uruguay Venezuela Leaders  -  Carlos Álvarez Establishment  -  Declaration of Foz do Iguaçu 30 December 1985   -  Treaty of Asunción...

NAFTA

Main article: North American Free Trade Agreement

NAFTA emblem

The North American Trade Agreement (NAFTA) is by far the most important Trade Agreement Mexico has signed both in the magnitude of reciprocal trade with its partners as well as in its scope. Unlike the rest of the Free Trade Agreements that Mexico has signed, NAFTA is more comprehensive in its scope and was complemented by the North American Agreement for Environmental Cooperation (NAAEC) and the North American Agreement on Labor Cooperation (NAALC). NAFTA redirects here. ... Image File history File links No higher resolution available. ... Image File history File links No higher resolution available. ...

The NAAEC agreement was a response to environmentalists' concerns that companies would relocate to Mexico or the United States would lower its standards if the three countries did not achieve a unanimous regulation on the environment. The NAAEC, in an aim to be more than a set of environmental regulations, established the North American Commission for Environmental Cooperation (NACEC), a mechanism for addressing trade and environmental issues, the North American Development Bank (NADBank) for assisting and financing investments in pollution reduction and the Border Environmental Cooperation Commission (BECC). The NADBank and the BECC have provided economic benefits to Mexico by financing 36 projects, mostly in the water sector. By complementing NAFTA with the NAAEC, it has been labeled the "greenest" trade agreement.^[69]

The NAALC supplement to NAFTA aimed to create a foundation for cooperation among the three members for the resolution of labor problems, as well as to promote greater cooperation among trade unions and social organizations in all three countries, in order to fight for the improvement of labor conditions. Though most economists agree that it is difficult to assess the direct impact of the NAALC, it is agreed that there has been a convergence of labor standards in North America. Given its limitations, however, NAALC has not produced (and in fact was not intended to achieve) convergence in employment, productivity and salary trend in North America.^[70]

The agreement fell short in liberalizing movement of people across the three countries. In a limited way, however, immigration of skilled Mexican and Canadian workers to the United States was permitted under the TN status. NAFTA allows for a wide list of professions, most of which require at least a Bachelor's degree, for which a Mexican or a Canadian citizen can request TN status and temporarily immigrate to the United States. Unlike the visas available to other countries, TN status requires no sponsorship, but simply a job offer letter. TN (Trade NAFTA) status is a special United States immigration status unique to citizens of Canada and Mexico. ...

The overall benefits of NAFTA have been quantified by several economists, whose findings have been reported in several publications like the World Bank's Lessons from NAFTA for LA and the Caribbean,^[70] NAFTA's Impact on North America,^[71] and NAFTA revisited by the Institute for International Economics.^[15] They assess that NAFTA has been positive for Mexico, whose poverty rates have fallen, and real income salaries have risen even after accounting for the 1994–1995 Economic Crisis. Nonetheless, they also state that it has not been enough, or fast enough, to produce an economic convergence nor to reduce the poverty rates substantially or to promote higher rates of growth. Some have suggested that in order to fully benefit from the agreement Mexico should invest in education and promote innovation as well as in infrastructure and agriculture.^[70] The World Bank logo The World Bank (the Bank) is a part of the World Bank Group (WBG), is a bank that makes loans to developing countries for development programs with the stated goal of reducing poverty. ...

Contrary to popular belief, the maquiladora program was in place far before NAFTA, in some sense dating all the way back to 1965. A maquiladora manufacturer operates by importing raw materials into Mexico either tariff free (NAFTA) or at a reduced rate on a temporary basis (18 months) and then using Mexico's relatively less expensive labor costs to produce finished goods for export. Prior to NAFTA maquiladora companies importing raw materials from anywhere in the world were given preferencial tariff rates by the Mexican government so long as the finished good was for export. The US, prior to NAFTA, allowed Maquiladora manufactured goods to be imported into the US with the tariff rate only being applied to the value of non US raw materials used to produce the good, thus reducing the tariff relative to other countries. NAFTA has eliminated all tariffs on goods between the two countries, but for the maquiladora industry significantly increased the tariff rates for goods sourced outside of NAFTA. A maquiladora or maquila is a factory that imports materials and equipment on a duty-free and tariff-free basis for assembly or manufacturing and then re-exports the assembled product, usually back to the originating country. ... Nafta or NAFTA may refer to: an acronym for the North American Free Trade Agreement an acronym for the New Zealand Australia Free Trade Agreement the town/Tokyo of Nafta, Tunisia This is a disambiguation page: a list of articles associated with the same title. ...

Given the overall size of trade between Mexico and the United States, there are remarkably few trade disputes, involving relatively small dollar amounts. These disputes are generally settled in WTO or NAFTA panels or through negotiations between the two countries. The most significant areas of friction involve trucking, sugar, high fructose corn syrup, and a number of other agricultural products.^[40] This article is about sugar as food and as an important and widely-traded commodity. ... High fructose corn syrup (HFCS) refers to a group of corn syrups which have undergone enzymatic processing in order to increase their fructose content and are then mixed with pure corn syrup (100% glucose) to reach their final form. ...

See also

• Infrastructure
  • Communications in Mexico
  • Transportation in Mexico
• List of Mexican companies
• Next Eleven
• Demography of Mexico

Several large U.S. telecommunications firms are active in Mexico. ... Mexicos land transportation network is one of the most extensive in Latin America. ... This is a List of Mexican companies: Aero California, airline Aerolitoral, airline Aeroméxico, airline Alestra, telecommunications Alfa, conglomerate Alpek, petrochemicals Alpura, dairy América Móvil Andrea, shoes Aviacsa, airline Avolar, airline Bachoco, poultry Banamex, bank (part of Citigroup) Banco del Bajio, bank Banorte, bank BBVA Bancomer, bank (part... N-11 nations in red The Next Eleven (or N-11) is a list of eleven countries named by Goldman Sachs investment bank on December 12, 2005 as having a high potential of becoming the worlds largest economies along with the BRICs, with promising outlooks for investment and future... Mexican people redirects here. ...

References

v • d • e North American Free Trade Agreement (NAFTA) Canada • Mexico • United States

v • d • e Caribbean Community (CARICOM) Members Antigua and Barbuda · Bahamas1 · Barbados · Belize · Dominica · Grenada · Guyana · Haiti1 · Jamaica · Montserrat2 · St. Kitts and Nevis · St. Lucia · St. Vincent and the Grenadines · Suriname · Trinidad and Tobago Associate members Anguilla · Bermuda · Cayman Islands · British Virgin Islands · Turks and Caicos Islands Observers Aruba · Colombia · Dominican Republic · Mexico · Netherlands Antilles · Puerto Rico · Venezuela 1 Member of the Community but not of the CARICOM Single Market and Economy (CSME).   2 British overseas territory awaiting entrustment to join the CSME.

v • d • e Members of the World Trade Organization (WTO) Albania · Angola · Antigua and Barbuda · Argentina · Armenia · Australia · Bahrain · Bangladesh · Barbados · Belize · Benin · Bolivia · Botswana · Brazil · Brunei · Burkina Faso · Burma · Burundi · Cambodia · Cameroon · Canada · Cape Verde · Central African Republic · Chad · Chile · PR China · Colombia · Democratic Republic of the Congo · Republic of the Congo · Costa Rica · Côte d'Ivoire · Croatia · Cuba · Djibouti · Dominica · Dominican Republic · Ecuador · Egypt · El Salvador · European Union¹ · Republic of Macedonia · Fiji · Gabon · The Gambia · Georgia · Ghana · Grenada · Guatemala · Guinea · Guinea-Bissau · Guyana · Haiti · Honduras · Hong Kong² · Iceland · India · Indonesia · Israel · Jamaica · Japan · Jordan · Kenya · South Korea · Kuwait · Kyrgyzstan · Lesotho · Liechtenstein · Macau² · Madagascar · Malawi · Malaysia · Maldives · Mali · Mauritania · Mauritius · Mexico · Moldova · Mongolia · Morocco · Mozambique · Namibia · Nepal · New Zealand · Nicaragua · Niger · Nigeria · Norway · Oman · Pakistan · Panama · Papua New Guinea · Paraguay · Peru · Philippines · Qatar · Rwanda · St. Kitts and Nevis · St. Lucia · St. Vincent and the Grenadines · Saudi Arabia · Senegal · Sierra Leone · Singapore · Solomon Islands · South Africa · Sri Lanka · Suriname · Swaziland · Switzerland · Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu³ · Tanzania · Thailand · Togo · Tonga · Trinidad and Tobago · Tunisia · Turkey · Uganda · Ukraine · United Arab Emirates · United States · Uruguay · Venezuela · Vietnam · Zambia · Zimbabwe-1... Image File history File links Size of this preview: 800 × 370 pixelsFull resolution (1357 × 628 pixel, file size: 19 KB, MIME type: image/png)World map of World Trade Organization (WTO) members/non-members, 2005; based on Image:BlankMap-World-v2. ... Economy - overview: Antigua and Barbudas economy is service-based, with tourism and government services representing the key sources of employment and income. ... Burkina Faso is one of the poorest countries in the world with an average income per capita of €250 (US$300). ... To meet Wikipedias quality standards, this article may require rewriting and/or reformatting. ... All text and figures relate to mainland China only, unless stated. ... Sparsely populated in relation to its area, the Democratic Republic of the Congo is home to a vast potential of natural resources and mineral wealth, yet the economy of the DROC has declined drastically since the mid-1980s. ... This article or section does not cite its references or sources. ... The economy of Costa Rica heavily depends on tourism, agriculture, and electronics exports. ... The Ivorian economy is largely market based and depends heavily on the agricultural sector. ... The Dominican Republic is a middle-income developing country primarily dependent on agriculture, trade, and services, especially tourism. ... This article does not cite its references or sources. ... If it is considered as a single state, the economy of the European Unions twenty-seven member states is the worlds largest economy. ... Economy - overview: The breakup of Yugoslavia in 1991 deprived F.Y.R.O.M. (Former Yugoslav Republic of Macedonia), then its poorest republic (only 5% of the total federal output of goods and services), of its key protected markets and large transfer payments from the center. ... Economy - overview: The Gambia has no important mineral or other natural resources and has a limited agricultural base. ... This article needs to be updated. ... The Economy of Hong Kong is widely believed, and some argue incorrectly, to be the most economically free in the world. ... Currency 1 South Korean Won (W) = 100 Jeon(Chŏn) (theoretical) Fiscal year Calendar year Trade organizations APEC, WTO and OECD GDP ranking 10th by volume (at nominal) (2006); 11th by volume (at PPP) (2006); GDP (Nominal) $981. ... The Economy of New Zealand is a small but prosperous free market economy, which is greatly dependent on international trade, mainly with Australia, the United States of America and Japan. ... Papua New Guinea is richly endowed with natural resources, but exploitation has been hampered by the rugged terrain and the high cost of developing infrastructure. ... The economy of Saint Kitts and Nevis has traditionally depended on the growing and processing of sugar cane; decreasing world prices have hurt the industry in recent years. ... Saint Lucias economy depends primarily on revenue from banana production and tourism with some input from small-scale manufacturing. ... The St. ... Economy - overview: Saudi Arabia has an oil-based economy with strong government controls over major economic activities. ... To meet Wikipedias quality standards, this article may require rewriting and/or reformatting. ... A per capita GDP of $340 ranks Solomon Islands as a lesser developed nation. ... South Africa has a two-tiered economy; one rivaling other developed countries and the other with only the most basic infrastructure. ... With an economy of $27. ... Republic of China (ROC) has a dynamiccapitalist economy with gradually decreasing guidance of investment and foreign trade by the government. ... Trinidad and Tobago experienced a real growth rate of 3. ... // The United Arab Emirates has a highly industrialized economy that makes the country one the most developed in the world, based on various socioeconomic indicators such as GDP per capita, energy consumption per capita, and the HDI. At $168 billion in 2006, the GDP of the UAE ranks second in... The economy of the United States has been the worlds largest national economy since the late 1890s;[1] its gross domestic product (GDP) was estimated as $13. ... All twenty-seven member states of the European Union are also members of the WTO in their own right: Austria • Belgium • Bulgaria • Cyprus • Czech Republic • Denmark • Estonia • Finland • France • Germany • Greece • Hungary • Ireland • Italy • Latvia • Lithuania • Luxembourg • Malta • Netherlands and Netherlands Antilles • Poland • Portugal • Romania • Slovakia • Slovenia • Spain • Sweden • United Kingdom. Special Administrative Region of the People's Republic of China. Designated name for the Republic of China (Chinese Taipei)

Of the emerging democracies in central and eastern Europe, Czechia has one of the most developed industrialized economies. ... Tourism, petroleum transshipment, and offshore finance are the mainstays of the Netherlands Antillean economy, which is closely tied to the outside world. ... The economy of the United Kingdom is the fifth largest in the world in terms of market exchange rates and the sixth largest by purchasing power parity (PPP). ... A Special Administrative Region (SAR) of the Peoples Republic of China is an administrative division of the Peoples Republic of China (PRC). ... For the Chinese civilization, see China. ...

External links

• (Spanish) Mexican Council for Economic and Social Development
• (Spanish) Mexico Development Gateway
• (English) OECD's Mexico country Web site and OECD Economic Survey of Mexico
• (English) Gross Domestic Product Growth - Mexico