Mexico

Shelbie Lock

Overall Score: 66.4

Overall Rank: 59

Mexican Quick Facts/ United States

  • Population: 118.4 Million/316.4 Million
  • GDP: 1.8 Trillion/16.8 Trillion
  • GDP Growth: 1.1%/1.9%
  • GDP Per Capita: $15,563/$53,101
  • Unemployment: 5.0%/7.5%
  • Inflation: 3.8% /1.5%
  • Foreign Direct Investment: $38.3 Billion/$187.5 Billion

7 Major Sources Of Economic Income

Legal System

Mexico has a score of 50.0 for property rights and 34.0 for freedom from corruption.

For the most part Mexico protects privately owned property and enforces contracts in an evenhanded manner. Mexico’s legal environment has also improved through its membership in international organisations such as the NAFTA, the Organization for Economic Cooperation and Development, the World Trade Organization, and the Asia-Pacific Economic Cooperation. Mexican participation means that Mexico is committed to the development of a competitive field in trade and investment with internationally accepted rules.

Competitive Markets

Mexico has engaged in many trade agreements that have left unaffected internal competition, being one of the most trade-opened countries in the world is also one of the most restrictive regarding product market competition.

Limits on Government Regulation

In Mexico business freedom is 71.5 and labor freedom is 59.9. Monetary freedom is also 77.6. Mexico fails to trade with the United States or another country for electricity and therefore have to spend more money on it.
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An Efficient Capital Market

In Mexico the trade freedom is 85.6 and the investment freedom is 70. Mexico's financial freedom is 60. In Mexico, factors that have limited capital market freedom includes unsound monetary policy, government corruption and insecure property rights. Improvement i n there and other areas have increased economic freedom.
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Monetary Stability

Guilremo Ortiz brought inflation and interest rate down to their lowest level in many years. He needs to continue to focus on long-term price stability as the key objective of monetary policy. The reduction has helped Mexico attract capital and has established the peso.

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Low Tax Rates

In Mexico government spending is 78.0 and fiscal freedom is 77.8. The corporate tax rate in Mexico is 28-30%. The individual minimum is 1.92% while the individual maximum is 30%.

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Free Trade

Mexico has several free trade agreements such as NAFTA. They currently have one with the European union that allows free trade. Having free trade agreements limits tariffs and barriers and helps regulate the economy.
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Mexico's Economy: Current Prospects and History Introduction

Interesting Facts on the Economy

  • Mexico's geographic size is equivalent to Saudi Arabia, but supports five times as many people while exporting 1/4 of the oil.
  • Mexico is the 17th largest exporter in the world, and 78% of them go to the United States.
  • Mexico is under 12 free trade agreements.