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According to the World Bank, Mexico is the 12th nation in
the world in regards to GDP and the highest per capita
income in that region; and is firmly established as an upper
middle-income country. Since the economic debacle of
1994–1995 the country has made an impressive economic
recovery. According to the director for Colombia and Mexico
of the World Bank, the population below the poverty level
has decreased from 24.2% to 17.6% in the general population
and from 42% to 27.9% in rural areas. Mexico has a
free-market economy with a mixture of modern and outmoded
industry and agriculture, increasingly dominated by the
private sector. The number of state-owned enterprises in
Mexico has fallen from more than 1,000 in 1982 to fewer than
200 in 1999. The administration of President Ernesto Zedillo
(1994–2000) continued a policy of privatizing and expanding
competition in sea ports, railroads, telecommunications,
electricity, natural gas distribution, and airports which
was initiated by his predecessors Miguel de la Madrid and
Carlos Salinas.
Also see:
Mexican Trade
Mexican Agriculture
A strong export sector helped to cushion the economy's
decline in 1995 and led the recovery in 1996–1999. Private
consumption became the leading driver of growth, accompanied
by increased employment and higher wages. Mexico still needs
to overcome many structural problems as it strives to
modernize its economy and raise living standards. Income
distribution is very unequal, with the top 20% of income
earners accounting for 55% of income.
Following 6.9% growth in 2000, real GDP fell 0.3% in
2001, with the US slowdown the principal cause. Positive
developments in 2001 included a drop in inflation to 6.5%, a
sharp fall in interest rates, and a strong peso that
appreciated 5% against the US dollar. Trade with the US and
Canada has tripled since NAFTA was implemented in 1994.
Mexico has opened its markets to free trade as no other
country in the world, having lifted its trade barriers with
more than 40 countries in 12 Free Trade Agreements,
including Japan and the European Union. However more than
85% of the trade is still done with the United States.
Government authorities expect that by putting more than 90%
of trade under free trade agreements with different
countries Mexico will lessen its dependence on the US. The
government is seeking to sign an additional agreement with
Mercosur.
Sources:
www.wikipedia.org |
