Mexico has a free market economy with a mixture of agriculture, industry and services. In 2008, Mexico was badly affected by the global economic downturn. Mexico has developed its tourist sector in recent years and it is the largest source of currency income for Mexico.

Mexico is one of the world’s largest oil producers and exporters, but only generates approximately 3% of total GDP.

(Source: inegi.org.mx)

GDP for the third quarter in 2010 measured in current US dollars was 1,037.1 billion compared to 1,030.6 billion in the second quarter. The corresponding figure for 2009 was 912.8 billion.

GDP growth rate

The GDP growth rate in the third quarter of 2010 was 5.3% compared to a decline of 5.5% in the corresponding quarter of 2009.

(Source: inegi.org.mx)

Gross national income (GNI) per capita

Mexico’s GNI per capita in 2009 was USD 8,960 compared to USD 10,000 in 2008. The GNI per capita at PPP was USD 14,020 in 2009.

(Source: world Bank)

(Source: inegi.org.mx)

Inflation

Mexico's core inflation rate declined to 3.89% from the previous year. The non-core inflation rate decreased to 5.02% from the previous year, because of a decline in the price of consumer goods.

(Source: banxico.org.mx)

Income tax

The income tax for individuals was 30% between 2010 and 2012. The tax rates are expected to decrease to 29% in 2013 and decrease further to 28% in 2014.

(Source: taxrates.cc)

Corporate tax rate

Standard corporate tax in Mexico is 30%. The corporate tax includes capital gains tax, branch profit tax, transparent regime, fringe benefit tax, local taxes and other taxes.

(Source: taxrates.cc)

Foreign direci Investment (FDI) Inflow

The FDI inflow in the first three quarters of 2010 was USD 5577.7 million.

(Source: inegi.org.mx)

Portfolio investment inflow

(Source: inegi.org.mx)

Stock market capitalisation

The Mexican stock exchange market capitalization has grown steadily. At the end of 2009, the market capitalisations increased by MXN 160,448 millions.

(Source:banxico.org.mx)

Consumer Price Index

The CPI in Mexico declined to 4.15 from 5.31 in 2008. There was a decrease in the price level of consumer goods and services purchased by households.

(Source: banxico.org.mx)

Wholesale price index

In 2009, the wholesale price index (WPI) in Mexico increased to 5.93% from the previous year because of an increase in the price of agricultural and industrial goods.

(Source: Worldbank)

Interest rate

(Source: banxico.org.mx)

In 2010, the bank rate included the wholesale operations of banks and brokerages. The government rate included banking day transactions and government debt securities.

Money supply (Currency in Circulation)

(Source: banxico.org.mx)

M1 includes currency in public power, checking in national currency, checking in foreign currency, current account deposits, deposits in savings and loan.

M2 decreased by 6.08% from the previous year. M2 includes resident bank deposits, capturing savings and loans, public debt held by residents, housing funds and other transactions.

M3 in 2009 increased by 6.61%compared to the previous year. M3 includes non-resident bank deposits and public debt held by non-residents.

M4 includes residents  and non-residents from abroad. M4 increased by 6.37% from the previous year.

Official exchange rate

Mexico's official exchange rate declined marginally to EUR16.38.

(Source: banxico.org.mx)

Government finances

Sovereign debt dynamics

Fiscal balance

Between January and November 2010, Mexico’s fiscal deficit was MXN 248,946.1 million. The fiscal deficit decreased compared to the corresponding period in 2009, when fiscal deficit was MXN 218,065.8 million.

(Source: hacienda.gob.mx)

Total revenue and expenditure

Mexico's fiscal revenue between January and November 2010 was MXN 1,850,475.2 million compared to the 2009 (January to November) figures of MXN 1,725,276.7 million.

The total expenditure for the same period was MXN 2,099,421.3 million compared to the previous years expenditure of MXN 1,943,342.5 million.

(Source: hacienda.gob.mx)

Current account balance

Mexico registered a current account deficit of USD 5238.2 million in 2009 compared to a deficit of USD 15,888.8 million in 2008.

(Source: banxico.org.mx)

Balance of payment

(Source: inegi.org.mx)

Labour force

In December 2010, 57.07% of the total population was of working age. 95.06% of the total labour force were employed and the remaining 4.94% were unemployed.

(Source: inegi.org.mx)

(Source: inegi.org.mx)

At the end of 2010, there was a marginal decrease in the labour force participation rate. In December 2010, the participation rate of men was 75.52% and 40.46% for women.

Unemployment rate

(Source: inegi.org.mx)

Mexico’s unemployment rate in December 2010 was 5.5% compared to 5.4% in December 2009.

Minimum wage

Mexico’s minimum wage rate has been increasing marginally every year. In 2010, the minimum wage was 55.77 pesos per day. The minimum wage in 2010 increased by 4.85% compared to the previous year.

(Source: banxico.org.mx)

Government stability

Mexico's is a federal republic and has a presidential form of government. The government includes 31 states and the federal district. It is divided into the executive, the legislative and the judicial branches.

In the United Mexican States, the president has federal executive powers and each of the 31 states has a governor and chief of government for the federal district. All the members are elected for a term of six years.

The Union Congress is in charge of the federal legislative branch, which is divided into an upper and lower chamber. The legislative branch of the thirty-two states is single-chambered . Members of the 31 states are called local congresses. The legislative branch of the federal district is called the Legislative Assembly. The term for all legislators is three years and for members of the upper chamber it is six years.

The current president of Mexico is Felipe Calderon of the conservative National Action Party and won the presidency in 2006.

The main political parties include:

·         Partido Acción Nacional, PAN (National Action Party)

·         Partido de la Revolución Democrática, PRD (Party of the Democratic Revolution)

·         Partido Revolucionario Institucional, PRI (Institutional Revolutionary Party)

(Source: ife.org.mx, fco.gov.uk)

Regulatory environment

Mexico’s economic freedom score is 67.8, making its economy the 48^th freest in the 2011 Index. Mexico ranked 3^rd out of three countries in the North American region. Mexico’s score is higher than the world average.

(Source: heritage.org)

Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Mexico is ranked 98^th on the index which indicates that the levels of corruption in public departments is relatively high.

The CPI ranking of Mexico increased from 89^th in 2009 to 98^th in 2010 with a score of 3.1, indicating that the levels of corruption have increased.

(Source: transparency.org)

Freedom of information

The World Press Freedom Index 2010 ranked Mexico 136^th with a score of 47.5, which indicates that media in Mexico is restricted.

Newspapers

The main newspapers in Mexico include:

·         Excelsior

·         La Jornada

·         Reforma

·         El Universal

·         El Sol de Mexico

·         El Financiero

·         Siempre!

·         Proceso

(Source: BBC,rsf.org)

Judicial system

The judicial system consists of the Supreme Court of Justice, federal and local courts. The federal courts include the Supreme Court with 32 circuit tribunals, 98 district courts, and 21 magistrates. In the Superior Court of Justice, the Plenary is the highest authority.

(Source: poderjudicialdf.gob.mx)

The total population of Mexico in 2010 was 112.3 million, increasing at a rate of approximately 4.4% over the previous year. 57.5 million of the total population are female and 54.8 million are male.

In 2011, the average life expectancy was 76 years of age. The average life expectancy for men and women between 2005 and 2010 was 73.8 years and 78.7 years respectively.

The mortality rate (per thousands) is 5.0 in 2011. The infant mortality rate (per thousands live birth) is 13.7 in 2011.

(Source: inegi.org.mx)

Mexico’s urban population was 72.3% of the total population in 2009.

(Source: banxico.org.mx)

The number of migrants in Mexico at mid-2010 was estimated at 725,684 people. This was 0.7% of the total population. The number of migrants as % of the population increased from 0.6% in 2005.

(Source: esa.un.org)

Ethnic groups in Mexico include:

·         Indian-Spanish

·         Indian

·         Caucasian and others

(Source: state.gov)

Mexico ranks 56^th out of 169 countries on the Human Development Index 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education).

(Source: UNDP)

Literacy rate

Mexico’s literacy rate for the population above 15 years of age is 94.6% for men and 91.5% for women.

(Source: destatis)

Education resources

In Mexico, the education system includes:

·         Early Childhood Education

·         Basic Education

·         Middle school

·         Higher Education

The gross enrolment ratio for primary education for male and female school children are 114% and 112% respectively. The corresponding figures for secondary education are 85% for male and 90% for female students. Public expenditure on education is 4.8% of GDP.

(Source: destatis)

Healthcare resources

The health care system in Mexico includes both public and private organisations. A percentage of employee salaries si put towards the state insurance scheme. The Institute of Social Security operates primary care units and state hospitals for the insured. Mexico’s armed and naval forces also have their individual insurance programs.

In 2003, Seguro Popular or the Popular Health Insurance program was launched in Mexico to provide healthcare services to the uninsured population.

The expenditure on health care in Mexico is increasing. The private health care system is growing fast by providing new clinics and specialized hospitals.

According to data from the World Health Organization (WHO), the major causes of death in Mexico include diabetes, heart and liver disease.

(Source: cbc.ca)

Mass public transit

The main mode of public transport in Mexico includes roads (buses and cabs), railway and air travel.

Roadways

The total length of roads in Mexico was 366,341 kilometres at the end of 2009. This included:

·         Toll Highways: 8,156 km

·         Free Highways: 40,716 km

·         Paved Roads: 132,973 km

(Source:banxico.org.mx)

Railways

The total length of the rail network in Mexico was 26,717 kilometres in 2009.

(Source:banxico.org.mx)

Ports

There are 41 ports in Mexico and main ports are - Tampico, Port of Veracruz, Puerto de Guaymas, Mazatlan and Manzanillo.

Source: (world port source)

Airports

The main airports in Mexico are:

(Source: Air charter world)

Telecommunications Networks

In 2010, the number of internet users increased by 11.68% compared to the previous year. The internet penetration rate in Mexico increased to 27.2% in 2009 from 24.9% the previous year.

(Source:internetworldstats.com)