Mexico Economy 1997

Economy - overview Mexico has a free market economy with a mixture of modern and outmodedindustry and agriculture, increasingly dominated by the private sector. TheMexican economy enters 1997 in the midst of an economic recovery that beganto pick up steam in mid-1996. After plummeting more than 6% in 1995 in theaftermath of the peso crisis, economic activity in Mexico grew by an estimated5.1% in 1996. Many private forecasters who had scoffed at the ZEDILLO administration's3% growth target for 1996 are now projecting economic expansion of 4-5% for1997. Strong export growth continues to drive the economy; total exports wereup roughly 16% in 1996 compared to 1995. By the end of 1996, however, Mexicangovernment statistics showed that increased domestic consumption and investmentspending were also beginning to contribute to the recovery. Despite thesepositive economic trends, structural problems and vulnerabilities remain.Low savings rates will keep Mexico dependent on foreign capital; nationalsavings as a share of GDP plunged from a peak of 25% in 1983 to less than14% in 1994. Additionally, Mexico City is still struggling to bail out a bankingsector burdened with bad debts. Mexico's international trade continues tobe highly dependent on the US market. The US/Mexico trade balance has shiftedover the last two years because of the peso's rapid devaluation in late 1994,which made Mexican exports much more attractive. In 1995 and 1996, the USran trade deficits with Mexico, a large turnaround from 1994's trade surplusof about $1.3 billion.

GDP purchasing power parity - $777.3 billion (1996 est.)

GDP - real growth rate 5.1% (1996 est.)

GDP - per capita purchasing power parity - $8,100 (1996 est.)

GDP - composition by sector
agriculture : 8%
industry: 28%
services: 63% (1995 est.)

Inflation rate - consumer price index 28% (1996 est.)

Labor force
total: 36.3 million (November 1996)
by occupation: services 31.7%, agriculture, forestry, hunting, and fishing 28%, commerce14.6%, manufacturing 11.1%, construction 8.4%, transportation 4.7%, miningand quarrying 1.5%

Unemployment rate 10% (1996 est.) plus considerable underemployment

Budget
revenues: $73.8 billion
expenditures: $74 billion, including capital expenditures of $NA (1996 est.)

Industries food and beverages, tobacco, chemicals, iron and steel, petroleum, mining,textiles, clothing, motor vehicles, consumer durables, tourism

Industrial production growth rate 11% (1996 est.)

Electricity - capacity 40.502 million kW (1995)

Electricity - production 142.344 billion kWh (1995)

Electricity - consumption per capita 1,206 kWh (1995 est.)

Agriculture - products corn, wheat, soybeans, rice, beans, cotton, coffee, fruit, tomatoes;beef, poultry, dairy products; wood products

Exports
total value: $95 billion (f.o.b., 1996 est.), includes in-bond industries
commodities: crude oil, oil products, coffee, silver, engines, motor vehicles, cotton,consumer electronics
partners: US 80%, Canada 5.2%, Japan 1.8% (1996 est.)

Imports
total value : $88.5 billion (f.o.b., 1996 est.), includes in-bond industries
commodities: metal-working machines, steel mill products, agricultural machinery,electrical equipment, car parts for assembly, repair parts for motor vehicles,aircraft, and aircraft parts
partners : US 74.8%, Japan 5.1%, Germany 3.65%, Canada 1.4%, France 1.1% (1996est.)

Debt - external $170 billion (1996 est.)

Economic aid
recipient: ODA, $85 million (1993)
note : US commitments, (Emergency Stabilization Fund), $13.5 billion; IMF,$13 billion (1995-96)

Currency 1 New Mexican peso (Mex$) = 100 centavos

Exchange rates market rate of Mexican pesos (Mex$) per US$1 - 7.8270 (January 1997),7.6009 (1996), 6.4194 (1995), 3.3751 (1994), 3.1156 (1993), 3,094.9 (1992)
note: the new peso replaced the old peso on 1 January 1993; 1 new peso = 1,000old pesos

Fiscal year calendar year

NOTE: The information regarding Mexico on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Mexico Economy 1997 information contained here. All suggestions for corrections of any errors about Mexico Economy 1997 should be addressed to the CIA.