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					Mexico


        United Mexican States
      Estados Unidos Mexicanos


              Mexico City


             1,972,550 km2
    (about 1/5th the area of the U.S.)
                         Population
   Population (2007 est.): 108,700,891
   Pop. Density: 55.1 persons/km2
    • State of Baja California Sur: 6 persons/km2
    • Mexico City: 5565 persons/km2
   Growth Rate: 1.153% annually
    • Net Migration: 0.432% annually
   Life Expectancy
    • Male: 72.18 years
    • Female: 77.83 years
   Ethnic Groups
    •   Indian-Spanish: 60%
    •   Indian: 30%
    •   Caucasian: 9%
    •   Other: 1%
               Macroeconomic Statistics

   GDP (USD)
    •   Actual: $885B
    •   PPP (U.S.): $1.21T
    •   Per Capita: $8,140
    •   Per Capita PPP: $11,160
    •   Growth Rate: 2.8%
    •   Composition
            Services: 70%
            Industry: 26%
            Agriculture: 4%
           Economic Statistics cont’d
   Inflation Rate: 3.8%

   Unemployment Rate: 3.2%

   Government Budget
     • Revenue: $196.5B
     • Expenditure: $196.2B
     • Balance: +$300M

   Outstanding Public Debt: 20.7% of GDP

   Current Account Balance: -$400.1M
                            Exports/Imports

   Exports
    • Goods: Manufactured goods, oil and oil
      products, silver, fruits, vegetables, coffee,
      cotton
    • Partners: US 85.7%, Canada 2%, Spain 1.4%
   Imports
    • Goods: Metalworking machines, steel mill
      products, agricultural machinery, electrical
      equipment, car parts for assembly, repair parts
      for motor vehicles, aircraft, and aircraft parts
    • Partners: US 53.4%, China 8%, Japan 5.9%
     Note: Partners listed are the major players. As one will see, Mexico has many import and
                             export partners through trade agreements.
                   Regional Trade

   Free Trade Agreements
    • NAFTA (1994)
    • EFTA (2000)
    • Bolivia, Chile, Costa Rica, European Union, Israel, Japan,
      Nicaragua, Northern Triangle, Uruguay


   Partial and Preferential Trade Agreements
    • Venezuela-Columbia
    • MERCOSUR (2002)
    • Brazil, Panama, Uruguay
                 Fiscal Policy

   Budget deficit targets
   Current Risks
    • Government spends too much on
      consumption and not enough on
      investment
    • Oil Revenue: Volatile, accounts for 1/3
      of revenue in the public sector
   Tax Reform (currently only 15% of
    GDP)
    Monetary and Exchange Rate Policy

   Monetary Policy
    • Largely concerned with inflation targeting
    • Better communication with financial markets


   Exchange Rate Policy
    • Floating exchange rate since 1994 devaluation of peso
    • Currency volatility: about 6% standard deviation
      annually vs. USD


   Central Bank independent of political climate
                   Social Policies

   Unemployment
    • Calderon committed to lowering
   Social Security
    • Majority of employment insurance financed privately
    • Old-age, disability, and survivor pensions
    • Reform with U.S.
   Education
    • Spending equal to 6.3% of GDP, higher than OECD
      average of 5.8%
             External Relations

   Generally good save a few minor
    disputes
   U.S. Border Disputes
    • Illegal immigration
    • Drug Trafficking
    • Human Trafficking
    • Water-Sharing
   Guatemalan Immigrants
                              References
   Background Note: Mexico(2007). Department of State. Retrieved May 15, 2007, from
    http://www.state.gov/r/pa/ei/bgn/35749.htm.
   Mexican Peso(2007). Rates FX. Retrieved May 18, 2007, from
    http://www.ratesfx.com/predictions/pred-mxn.html.
   Mexico(2007). CIA. Retrieved May 20, 2007, from
    https://www.cia.gov/library/publications/the-world-factbook/geos/mx.html.
   Annual Report Summary(2006). Banco de Mexico. Retrieved May 18, 2007, from
    http://www.banxico.org.mx/publicadorFileDownload/download?documentId={79B04
    1DA-1574-2EF4-6206-18EAABA9BCC4}.
   Country Briefings: Mexico(2006). Economist. Retrieved May 15, 2007, from
    http://www.economist.com/countries/Mexico/.
   Mexico: Policy Note on Fiscal Policy(2006). OECD. Retrieved May 20, 2007, from
    www.foropoliticaspublicas.org.mx/docs/Fiscal.pdf.
   Policy Brief on Mexico: Education(2006). OECD. Retrieved May 15, 2007, from
    http://www.foropoliticaspublicas.org.mx/docs/Educacion.pdf.
   Mexico(2003). Social Security Online. Retrieved May 15, 2007, from
    http://www.ssa.gov/policy/docs/progdesc/ssptw/2002-2003/americas/mexico.html.
   Mexico SICE. Retrieved May 18, 2007, from
    http://2005.sice.oas.org/Trade/mex_e.ASP.
   Knight, M. (2005). Central Bank Independence-what Role does it Play in Shaping
    Mexico's Economy?Bank for International Settlements. Retrieved May 20, 2007, from
    http://www.bis.org/speeches/sp051114.htm.

				
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