Mexico’s economic history is mired in political unrest, however with help from its neighboring countries Mexico’s economic climate has shown room for growth and stability. While Mexico profits from an array of different exports, their economy is also closely tied with our governments. This being said it is important for us to know the economic climate of our neighbor in order to accurately predict and forecast trends in our country as well as others abroad. By analyzing the countries inflation, growth, exports, and economic history we can have a better understanding of this countries economy as well as our own.
First I would like to tell you about Mexico’s major exports. These major exports include oil, chemical products, and car products. Along with service sector, manufacturing and agriculture this helps make up the GDP of Mexico which measured 1.44 trillion dollars. Although this may sound to be a lot, it was only a 2.3% total increase from the previous year. And some economists have gone and stated that their GDP could rise as much as 4% in the coming year. However it is unlikely to occur due to the housing crisis and unsettled credit markets in the United States. But besides the negative outlook, there are areas within the Mexican economy that have great potential for growth.
The areas of growth in the Mexican economy seem to be based within the government and travel. An interesting thing I found while I was researching Mexico was that they house 16 of some of the largest companies in the world. At this time Mexico is reformatting its tax system which will bring in more money through taxes. The exact areas of growth lie in the natural gas field, airports, sea docks, telecommunication, and electricity generation. With annual increase these past two years, it seems as if Mexico will have at least a few jobs to stave off their unemployment rate which has jumped to 4% the highest in 5 years.
Due to the recent recession it is important for...