Mexico is the 12th most exporting and importing country in the world. Mexico is a country that attracts investors by its economic capacity Mexico is also very important market for world trade.
Mexico Economy and Foreign Trade Data
Mexico is the 12th largest exporter of the world with an export share of 450 billion USD. In 2017, Mexico increased its export capacity from 409 billion USD to 10% at the end of 2018.On the other hand, Mexico is also the 12th most importing country in the world. In 2017, imports increased from 420 billion USD to 462 billion USD in 2018. Therefore, we can say that the growth experienced in exports is balanced with imports and the country continues to provide current deficit.
- GDP (Million $) 1,212,831 (IMF, 2018)
- GDP per person ($) 9.723 (IMF, 2018)
- Population 124,738,000 (IMF, 2018)
- Growth Rate (%) 2,29% (IMF, 2018)
- Total Exports in 2018: USD 450 billion
- Total breakdown of 2018: 462 billion USD
- Current account deficit: USD 12 billion
Trade War Between Mexico & USA
The US has been pushing both
Canada and Mexico to change the terms of the NAFTA agreement since 1994. The US
intends to impose customs tariffs on many products to its home country and to
end free trade.
When we examine the figures for
2018, we see that Mexico's annual total exports to the United States are
approximately 345 billion USD. This figure is about 75% of Mexico's total
exports. On the other hand, Mexico's import from the US is USD 216 billion.
Mexico has a trade surplus of 129 billion USD from its bilateral trade with the
US. The main expectation of the US is to reduce the trade deficit by increasing
exports to Mexico and reducing imports. This will be a serious negative impact
on the Mexican economy.
Mexican Economy: Main Sectors
Agriculture & Livestock
With the rapid developments in other economic activities in Mexico, the share of the agricultural sector in GDP decreased to 3.6%. However, the agricultural sector is still an important sector in the western states where the food processing industry is concentrated, providing employment to 10.3% of the workforce in the country. More than half of the country's territory is composed of agricultural land.Agricultural production is concentrated in Jalisco, Nayarit, Guanajuato, Michoacan, Colina and Sinaloa. Mexico is an important food supplier for the Hispanic population, who live in the US and are close to 50 million. The demand for agricultural products from Mexico as well as from European and Asian consumers is high.
Mexico Industry Sector
After the NAFTA, which was established between the USA, Canada and Mexico, which was enacted in 1994, there was a revival in the industrial sector. The vehicles produced in kurulan maquiladora ad established on the US border were exported to the USA.Manufacturing industry accounts for 18.1% of GDP and employs 15.1% of the labor force. Although the manufacturing industry production decreased by 6.5% in 2009 due to the global crisis, recovery started in the first quarter of 2010. The rate of increase in industrial production in 2012 was 2.7%. In 2013, industrial production decreased by 0.6%.
Mexico Mining Sector
In Mexico, a country with rich mineral deposits, large mines were privatized in the 1990s, while tax concessions were extended from 3 to 6 years, and the operating right was increased from 25 to 50 years. Mexico is the world's largest silver producer after Peru.There are rich silver beds in Chihuahua and Zacatecas. The coke is found only in Colombia and Mexico in the Latin American region. In an assessment by The Fraser Institute in Mexico, Canada, it ranked 9th among 71 countries in terms of mining potential. In another study, he became the leader of Latin America with a 6% share in global mining exploration expenditures.
Mexico Tourism Sector
With its natural beauty and cultural richness, Mexico has an important potential in both ecotourism and cultural tourism. Mexico is also the region's leader in terms of tourism zones protected by UNESCO.The development of the tourism sector, which employs more than 13% of the total workforce in the country, has been encouraged by the government since the 1990s. 80% of the tourists coming to the country are of US origin and it is aimed to increase the number of European tourists. Mexico is also becoming an increasingly popular and attractive country for retirees and summer houses.
Mexico Energy Sector
In Mexico, energy consumption per capita is 30% of the per capita consumption in G8 countries. Oil and natural gas constitute 80% of the country's energy consumption, and these two sectors employ approximately 150,000 people.With the hydrocarbon reform that came into force in October 2008, Pemex was given more control over the flexibility and budget to cooperate with the private sector. With the energy reform carried out in August 2014 in order to increase the country's competitiveness and economic growth, the energy sector in Mexico has been opened to private (domestic or foreign) investments.
Top Export Products from Mexico
- Vehicles, parts and accessories: 115,5 billion USD
- Electrical machinery, equipment and parts: 81,9 billion USD
- Machinery, mechanical appliances,: 75,4 billion USD
- Mineral fuels, mineral oils and products of their distillation: 29,7 billion USD
- Optical, photographic medical instruments and parts: 19 billion USD
- Furniture; bedding, mattresses: 10,6 billion USD
- Plastics, plastic articles: 9,5 billion USD
- Edible vegetables and certain roots and tubers: 7,2 billion USD
- Articles of iron or steel: 6,7 billion USD
- Natural or cultured pearls, Gems, precious metals: 6,7 billion USD
Mexico Most Exporting Countries
- USA : 344 billion USD
- Canada : 14 billion USD
- China : 7,19 billion USD
- Germany : 7,07 billion USD
- Brazil : 4,4 billion USD
- Colombia : 3,54 billion USD
- Japan : 3,28 billion USD
- Netherlands : 2,38 billion USD
- Korea Republic : 2,28 billion USD
- UK : 2,21 billion USD
Top Import Products in Mexico
- Electrical machinery and equipment and parts: 94,8 billion USD
- Machinery, mechanical appliances: 77,4 billion USD
- Mineral fuels, mineral oils and products of their distillation: 46,3 billion USD
- Vehicles, parts and accessories: 43,05 billion USD
- Plastics and articles thereof: 25,3 billion USD
- Commodities not elsewhere specified: 17,16 billion USD
- Optical, photographic medical instruments and parts: 15,25 billion USD
- Iron and steel: 11,64 billion USD
- Articles of iron or steel: 9,75 billion USD
- Organic chemicals: 9,6 billion USD
Most Import Countries to Mexico
- USA : 216,25 billion USD
- China : 83,5 billion USD
- Japan : 18,19 billion USD
- Germany : 17,76 billion USD
- Korea Republic : 16,72 billion USD
- Canada : 10,77 billion USD
- Malaysia : 9,39 billion USD
- Taipei, Chinese : 8,26 billion USD
- Italy : 6,61 billion USD
- Brazil : 46,51 billion USD
Public Holidays and Working Hours in Mexico
- January 1 - New Year
- February 4 (First Monday in February) - Constitution Day
- March 18 (third Monday in March) - Benito Juarez's Birthday
- April 14 to 20 - Easter
- May 1- Labor Day
- May 5 - Victory in Puebla
- September 16 - Independence Day
- October 31 - November 2 - Day of the Dead
- November 18 (third Monday in November) - Mexican Revolution
- December 25 - Christmas
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