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  Monday, 20 August 2018 01:47 am
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Mexico's Gross Domestic Product (GDP) in purchasing power parity (PPP) was estimated at 1.134 billion USD in 2006, and 741.5 billion in nominal exchange rates. As such, its standard of living, as measured in GDP in PPP per capita was of 10,600 USD. The World Bank reported that the country's Gross National Income and income per capita in nominal market exchange rates were the highest in Latin America, at 753,394 million USD, and 7,310 USD respectively, and as such, Mexico is now firmly established as an upper middle-income country. After the slowdown of 2001 the country has recovered and has grown 4.2, 3.0 and 4.8 percent in 2004, 2005 and 2006, even though it is considered to be well below Mexico's potential growth.

INDUSTRY

The industrial sector as a whole have benefited from trade liberalization; in 2000 it accounted for almost 90% of all export earnings. Amongst the most important industrial manufacturer in Mexico is the automotive industry, whose standards of quality are internationally recognized. The automobile sector in Mexico differs from that in other Latin American countries and developing nations in that it does not function as a mere assembly manufacturer. The industry produces technologically complex components and engages in some research and development activities. The "Big Three" (General Motors, Ford and Chrysler have been operating in Mexico since the 1930s, while Volkswagen and Nissan built their plants in the 1960s. Now, Honda, BMW, and Mercedes-Benz joined in. Given the high requirements of North-American components in the industry, many European and Asian parts suppliers have also moved to Mexico: in Puebla alone, 70 industrial part-makers cluster around Volkswagen, the only producer of New Beetles and Jettas in the world.

Some large industries of Mexico include Cemex, the third largest cement conglomerate in the world, the alcohol beverage industries, including world-renowned players like Grupo Modelo, or conglomerates like FEMSA, which apart from owning breweries and the OXXO convenience store chain, is also the second-largest Coca-Cola bottler in the world, Gruma, the largest producer of corn flour and tortillas in the world, Bimbo, Telmex, Televisa, and many other high-tech industries, many of which are based in Monterrey. In 2001, according to the World Bank, high-tech industrial production represented 21% of total exports, the highest in Latin America.

Maquiladoras (Mexican factories which take in imported raw materials and produce goods for export) have become the landmark of trade in Mexico. This sector has benefited from NAFTA, in that real income in the maquiladora sector has increased 15.5% since 1994, though from the non-maquiladora sector has grown much faster.] Contrary to popular belief, this should be no surprise since maquiladora's products could enter the US duty free since the 1960's industry agreement. Other sectors now benefit from the free trade agreement, and the share of exports from non-border states has increased in the last 5 years while the share of exports from maquiladora-border states has decreased

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All right reserve by GIC International, 2007