Economic Environment

BASIC MACROECONOMIC INDICATORS FOR MEXICO 
 

VARIABLE 2008 2009 2010 f 2011 p
GDP real growth (1) 1.3% -6.5% 4.0% 4.0%
Inflation  (1) 5.1% 5.3% 5.0% 3.7%
Interest rates (2) 7.8% 4.5% 5.25% 6.25%
Exchange rate (3) 11.21 13.09 12.50 12.90
Imports (4) 308.6 252.4 263.4 292.9
Import growth (1) 9.5% -18.2% 11.1% 11.2%
Exports (4) 291.3 248.18 274.4 301.66
Export growth (1) 7.0% -14.8% 10.6% 9.9%
Foreign Direct Investment (4) 18.6% 12-14% 14-17% 18%

Notes:
(1) Percentage annual growth
(2) Annual average on 28 day Treasury Bonds (CETES)
(3) Pesos per dollar at year-end
(4) Billion US dollars Source: Estudios Económicos BANAMEX, August 2009 American Chamber Mexico, March 2009 World Trade Atlas

 

  • Mexico has a highly diversified free market economy with a mixture of modern and outmoded industry and agriculture, dominated by the private sector.
  • The Mexican government has privatized most state-owned enterprises.
  • Conservative fiscal and monetary policies have driven down interest rates and brought inflation into low single-digit levels.
  • These policies, coupled with sweeping political reforms and an increasingly robust democracy, have made Mexico one of the most attractive emerging markets in the world today.
  • Gross Domestic Product reached US$962.1 billion in 2009, and ranks 14th in the world.
  • GDP growth was 3.4% for the past 14 years (1996-2009).
  • The most important industrial sectors in Mexico are: Food and beverages, tobacco, chemicals, iron and steel, petroleum, mining, textiles and apparel, motor vehicles,
  • Mexico’s trade regime is among the most open in the world, with free trade agreements signed with 44 countries.
  • Trade with the U.S. and Canada has nearly doubled since NAFTA was implemented in 1994.
  • Total imports grew by 13% on average annually between 1994 and 2008 and reached an all time high of $308.6 billion dollars.
  • In 2008, US exports to Mexico (or Mexico’s imports from the US) were valued at a record US$151.3 billion and decreased to $112.4 billion dollars n 2009.
  • The United States is by far Mexico’s number one trading partner, while Mexico is also a leading trading partner of the U.S., second only to Canada.
  • Mexican exports increased by an average of 9.2% per year during the 2000-2008 period to reach a total of US$291.8 billion.

OPPORTUNITIES

  • Mexico has a liberal, pro-business environment
  • Macroeconomic growth and health
  • Government committed to macroeconomic stability and free trade
  • Robust financial system and credit availability
  • Mexico among top emerging markets as recipients of foreign investment
  • NAFTA created a free trade zone for Mexico, Canada and the United States starting in 1994.
  • Practically all U.S. goods enter Mexico duty free
  • Market opportunities exist for a full spectrum of internationally competitive foreign goods and services
  • There is a demand for the vast majority of products being marketed in the U.S. and other developed countries

GROWING SECTORS

  • A large number of sectors have good growth prospects:
    • Automotive parts and supplies
    • Electronic components
    • Building products and construction equipment
    • Aircraft, parts, airport and ground support equipment
    • Plastic materials and resins
    • Food processing and packaging equipment
    • Hotel and restaurant equipment
    • Water resources equipment and services
    • Pollution control equipment
    • Security and safety equipment
    • Process controls and instrumentation
    • Medical equipment and supplies
    • Food products
    • Travel and tourism services