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EconomicPoliticalStructural

Mexico – Quick View
ECR score58.13 (Mar 2011)
ECR rank54 (Mar 2011)
Economic
GDP, 2010 (till Q3)USD 3,041.7 billion
GNI per capita at PPP, 2009USD 14,020
FDI inflow, 2010 (Till Q3)USD 5577.7 million
Inflation, 20103.89%
Central bank assetsNA
Unemployment rate, 20105.5%
Government deficit, 2010USD 19,661.37 million
Tax revenueNA
Political
Government typeFederal Republic
Recent political crisisNA
Economic freedom score, 201148th
Freedom of information score136th
Corruption perception index98th
Structural
Birth rate17.5 per '000
Population balanceUnder 14 – 28.5%
Population balanceOver 60 – 9.6% (females), 8.6% (males)
Life expectancy yearsMale 73.8 years
Life expectancy yearsFemale 78.7 years
Mortality rate5.0 per '000
Literacy rate94.6% (males), 91.5% (females)
Internet access27.2%

[Top] Economic Overview

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.

Mexico 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.

Mexico GDP growth rate

 

(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)

Mexico GNI per capita

 

(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.

Mexico Inflation rate

(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.

 

Income

Fixed fee

Percent for applied on                                                                   the surplus of the lower limit

0.01 - 496.07

0.00

1.92%

496.08 - 4,210.41

9.52

6.40%

4,210.42 - 7,399.42

247.23

10.88%

7,399.43 - 8,601.50

594.24

16.00%

8,601.51 - 10,298.35

786.55

17.92%

10,298.36 - 20,770.29

1,090.62

21.36%

20,770.30 - 32,736.83

3,327.42

23.52%

32,736.84 - and above

6,141.95

30.00%

(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.

Mexico FDI inflow

(Source: inegi.org.mx)

Portfolio investment inflow

 

Period

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Portfolio investment

- 5,207.0

63.2

5,412.1

10,259.2

9,321.3

6,442.2

8,130.0

(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.

Mexico Stock market capitalisation

(Source:banxico.org.mx)

[Top] Financial Indicators & Government Financial

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.

Mexico CPI

(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.

Mexico WPI

(Source: Worldbank)

Interest rate

 

Period

Target Rate

Inter Bank Rate

Bank Rate

Government rate

December  2010

4.50%

4.8750%

4.60%

4.56%

(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)

Money Supply (billion pesos)

Monetary aggregates

2009

2008

M1

1,614.6

1,482.9

M2

6,661.8

6,279.4

M3

7,042.5

6,606.1

M4

7,116.4

6,690.1

(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.

Mexico Exchange rate

(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.

Mexico Current account balance

(Source: banxico.org.mx)

Balance of payment

Particulars

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Current Account

- 1,817.5

- 176.0

- 3,629.6

- 604.9

- 450.2

- 636.2

- 1,849.0

Financial Account

- 5,819.2

-1,789.9

11,471.3

12,737.2

5,114.5

6,306.5

10,097.9

Errors and Omissions

- 2,042.5

- 2,196.4

- 1,532.0

- 73.9

- 2,955.8

- 1,748.1

- 137.3

Change in Gross International Reserves

- 9,667.2

- 4,160.1

6,330.3

12,086.5

1,713.1

3,953.8

8,127.6

(Source: inegi.org.mx)

[Top] Labour Force and Employment Overview

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)

Mexico Labour force participation rate

 

(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 rateMexico 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.

Mexico Minimum wage

(Source: banxico.org.mx)

[Top] Political Stability

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 48th freest in the 2011 Index. Mexico ranked 3rd out of three countries in the North American region. Mexico’s score is higher than the world average.

 

 

Mexico Economic Freedom Indices

(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 98th on the index which indicates that the levels of corruption in public departments is relatively high.

The CPI ranking of Mexico increased from 89th in 2009 to 98th 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 136th 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)

[Top] Demographic Overview

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.

Mexico Population by gender

 

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.

Mexico Population and growth rate

(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 56th 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)

[Top] Soft Infrastructure

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)

 

[Top] Hard Infrastructure

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:

Town

Airport name

Runway length (ft.)

Mexico City

Lic Benito Juarez Intl

12,900

Cancun

Cancun Intl

11,400

Acapulco

Gen Juan N Alvarez Intl

10,800

Guadalajara

Don Miguel Hidalgo Intl

13,100

Monterrey

Gen Mariano Escobedo Intl

9,800

Toluca

Lic Adolfo Lopez Mateos Intl

13,700

Tijuana

Gen Abelardo L Rodriguez Intl

9,700

Puerto Vallarta

Lic Gustavo Diaz Ordaz Intl

10,100

San Jose Del Cabo

Los Cabos Intl

9,800

Hermosillo

Gen Ignacio Pesqueira Garcia

7,500

Merida

Lic Manuel Crecencio Rejon

8,800

Leon

De Guanajuato Intl

11,400

Culiacan

Culiacan Intl

7,500

Acapulco

Gen Juan N Alvarez Intl

10,800

Aguascalientes

Jesus Teran Intl

9,800

Veracruz

Gen Heriberto Jara Intl

7,800

Villahermosa

C P A Carlos Rovirosa Intl

7,200

Zacatecas

Gen Leobardo C Ruiz Intl

9,800

Ciudad Juarez

Abraham Gonzalez Intl

8,800

Chihuahua

Gen Div P A Roberto Fierro

8,500

Mazatlan

Gen Rafael Buelna Intl

8,800

Tuxtla Gutierrez

Francisco Sarabia

8,200

Zihuatanejo

Ixtapa-Zihuatanejo Intl

8,200

(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.

Mexico Internet subscribers

(Source:internetworldstats.com)

 

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