Economic trends
The Mexican economy showed a reduced growth rate in 2008 and even a negative rate in 2009. GDP growth should become positive again during 2010. The rise in international oil prices could contribute to the revival of the economy. Unemployment has increased in the last two years whereas inflation has remained relatively under control.
Nevertheless the general economic prospects are worrying. The anti-crisis mesures developed by Calderón's government are not discernable to the whole of the population. Additionally, the country's growing security issues discourage investments and tourism. In the near future, we are expecting more devaluations of the currency due as much to the reduction in foreign exchage income as to the constant capital flight.
Main branches of industry
Agriculture accounts for approximately 4% of the GDP and employs nearly 16% of the active population, however, the scarcity of credit continues to penalize this sector. Mexico ranks amongst the world's largest producers of coffee, sugar, corn and oranges. Mexico is amongst the world's leading producers of many minerals, including silver, fluorite, zinc and mercury, and its oil and gas reserves are one of its most precious possessions. Mexico is the world's 5th biggest producer of oil. Cattle farming and fishing are also important economic activities.
The free trade zones dedicated to exports to the United States, the "Maquiladoras", which up to now used to energize the Mexican economy, are currently suffering from a crisis caused by competition from Asian countries and the American economy recession. Consequently, the manufacturing sector has markedly slowed down in these recent years and currently contributes around a quarter of the country's GDP.
The tertiary sector contributes to around 60% of the GDP and the construction sector is coming up again due to real estate investments.
International trade
Mexico is one of the countries that most depends on foreign trade. Foreign trade represents around 70% of its GDP. Mexico is a member of NAFTA - the free-trade agreement that unifies the United States, Mexico and Canada, since 1994. The country signed a free trade agreement with the European Union in 2000 and a commercial agreement with Japan came into force in April 2005.
The United States buys 80% of Mexico's exports. Its main export partners are the NAFTA and the European Union. The main export goods are electrical and electronic equipment, vehicles, mineral fuels, oil and machinery. Its three main import partners are the NAFTA, China and Japan. It mainly imports electrical and electronics equipment, machinery, vehicles and plastic products.
Mainly because of the decrease of Mexican product purchases by the United States, the Mexican trade balance has been in deficit since 2008. This is another one of the chronic structural problems of the mexican economy, as the country imports more than it exports and the trend increased with the world crisis, especially in the oil sector. The devaluation of the Mexican peso in October 2008, which in theory made Mexican exports more attractive did not stabilize the growing trade balance deficit.
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