mexico economic report
TRANSCRIPT
![Page 1: Mexico Economic Report](https://reader030.vdocument.in/reader030/viewer/2022032512/55cfaec4bb61eb3a768b4607/html5/thumbnails/1.jpg)
MexicoSarah Lopez, Zack Holden, Brenna Gomez, and Ben Pompilus
![Page 2: Mexico Economic Report](https://reader030.vdocument.in/reader030/viewer/2022032512/55cfaec4bb61eb3a768b4607/html5/thumbnails/2.jpg)
Mexico’s Economic Overview
● Population- 118.4 million● GDP (PPP)
○ $1.8 trillion○ 1.1% growth○ 1.8% 5 year compound annual growth○ 15,563 per capita
● Unemployment 5.0%● Inflation 3.8%● FDI Inflow 38.3 billion
![Page 3: Mexico Economic Report](https://reader030.vdocument.in/reader030/viewer/2022032512/55cfaec4bb61eb3a768b4607/html5/thumbnails/3.jpg)
Mexico’s Economic Overview Continued...
● Economic freedom score 66.4● 59th freest country● Declined by .4 since last year● Ranked third out of the three countries in the North
America region, score is well above the world average● Over last 30 years, Mexico has transitioned from a
commodity- and agricultural-based economy to one dominated by manufacturing and services.
![Page 4: Mexico Economic Report](https://reader030.vdocument.in/reader030/viewer/2022032512/55cfaec4bb61eb3a768b4607/html5/thumbnails/4.jpg)
Surrounding Countries Freedom Scores
● US- 76.2, 12th freest
● Guatemala- 60.4, 87th freest
● Belize- 56.8, 117th freest
![Page 5: Mexico Economic Report](https://reader030.vdocument.in/reader030/viewer/2022032512/55cfaec4bb61eb3a768b4607/html5/thumbnails/5.jpg)
Exports
● USA (70%), Canada (5.4%), and Spain (2.1%)
● 15th largest
● Top 5 exports
● Furskins and artificial furs
![Page 6: Mexico Economic Report](https://reader030.vdocument.in/reader030/viewer/2022032512/55cfaec4bb61eb3a768b4607/html5/thumbnails/6.jpg)
Imports
● USA (47%) China (17%) , and Japan (4.9%)
● Top 5 imports
● Collector items, art, antiques
![Page 7: Mexico Economic Report](https://reader030.vdocument.in/reader030/viewer/2022032512/55cfaec4bb61eb3a768b4607/html5/thumbnails/7.jpg)
Surrounding Countries Exports + Imports
Guatemala● Export- TCT 11.4B● Import- TCT 16.8BUnited States● Export- TCT 1.23T● Import- TCT 1.8TBelize ● Export- TCT 490M● Import- TCT 1.25B
Mexico ● Export- TCT 349B● Import- TCT 295B
![Page 8: Mexico Economic Report](https://reader030.vdocument.in/reader030/viewer/2022032512/55cfaec4bb61eb3a768b4607/html5/thumbnails/8.jpg)
Corruption
● Fed by government ● Exist among all levels of society● Billions of narco-dollars are crossed over the
border each year from the United States● Courts are ineffective● Government spending has decreased
![Page 9: Mexico Economic Report](https://reader030.vdocument.in/reader030/viewer/2022032512/55cfaec4bb61eb3a768b4607/html5/thumbnails/9.jpg)
Mexican Presidency
● Enrique Peña Nieto
● Occupied positions in government
● President from 2012-Present Day
![Page 10: Mexico Economic Report](https://reader030.vdocument.in/reader030/viewer/2022032512/55cfaec4bb61eb3a768b4607/html5/thumbnails/10.jpg)
Presidential Reforms
● passed labor reform that makes it simpler for businesses to hire/fire employees● passed educational reform to make the system based more on quality and value● new legislation regarding telecommunications and the media have been created to try and create a broadened
view and availability● recent tax reforms should increase government income while also redistributing the tax burden
○ raising rates on the wealthiest○ taxing capital gains and dividends○ creating universal pensions and unemployment insurance
● focused on energy reforms, for example foreign investment in energy● government pursued financial changes to motivate lenders to extend credit ● Mexico can take advantage of its greatest potential with a strong economic base, this includes two important
economic ties: North America and the Pacific Alliance. The most important region for Mexico is and will be North America.
![Page 11: Mexico Economic Report](https://reader030.vdocument.in/reader030/viewer/2022032512/55cfaec4bb61eb3a768b4607/html5/thumbnails/11.jpg)
Mexico and US Relationship● most important region for Mexico is and will continue to
be the US● after NAFTA, intra regional trade has multiplied● half of this trade crosses US-Mexican border annually
![Page 12: Mexico Economic Report](https://reader030.vdocument.in/reader030/viewer/2022032512/55cfaec4bb61eb3a768b4607/html5/thumbnails/12.jpg)
Energy Reforms ● Two state-owned companies Federal
Commission of Electricity and Pemex ● Energy has remained as the one
important economic sectors still in state hands
● Sixth largest oil producer ● Exports 61.6% of that oil ● Estimated to increase long term oil
production 75%
![Page 13: Mexico Economic Report](https://reader030.vdocument.in/reader030/viewer/2022032512/55cfaec4bb61eb3a768b4607/html5/thumbnails/13.jpg)
Conclusion/Recommendation● Invest into Mexico!● Impressive number of structural reforms → lifted the image according to
international investors● Energy reforms● The oil sector, the education system, competition and labor laws, are going
through significant changes that will be beneficial for Mexico.● International markets seem to have realized that much of the groundwork
has been laid for a brighter future, even though Mexico’s GDP was not the best
● Today, Mexico’s fiscal position is solid, unemployment is low and the economy has gained in competitiveness.