Mexico Overview

The economic activity slackened in 2005 with a GDP growth rate at 3% in 2005 whereas it was 4.4% in 2004. The IMF forecasts a 3.5% growth in 2006. This improvement in the economic situation is due to high oil prices and the relaxing of the monetary politicy. The weak point of the Mexican economy is its dependance on the North America : 80% of Mexican exports and imports are carried out with the US.

Mexico holds sizeable natural resources : silver, gas and oil. Agriculture employs about a fourth of the active population. Mexico ranks among the world's largest producers of coffee, sugar, corn and oranges. Maquiladoras system, which has been growth's driving force since 1994, is currently undergoing a serious crisis. Maquiladoras, which were free zones with subcontracting factories for big American firms, are now suffering from Asian and Eastern European countries' competition where labour force is cheaper.
Petrochemicals, building, energy, transport and telecommunications are first plan sectors.

Mexico is the only one country which signed a commercial agreement with the United-States, the European Union, and Japan : Mexico is a member of the NAFTA, free trade agreement unifying the United States, Mexico and Canada since 1994. The country signed a free trade agreement with the European Union in 2000 and the commercial agreement signed with Japon came into force on April 2005.
Mexico's three largest export countries are the United States, Canada and Germany. Its three largest import countries are the United States, Canada and Japan. It mainly imports electrical machinery, equipment, machinery and mechanical appliances