What kinds of products does Mexico export
The Mexican Economy & Its Growth
Mexico's economy is dependent on trading partners.
Added to this, however, are the topographical and climatic conditions, which must be taken into account as a basis for, for example, mineral resources, agriculture or tourism.
The development of the economy in Mexico
In the economy, Mexico has long since risen to become a global player. It is one of the most progressive countries as well as the most important economies in Latin America and is considered the most important export nation of this region. In the past, Mexico has had to deal with serious crises time and again. Due to high foreign debt, bloated bureaucracy and inefficiency, major problems regularly arose, triggering high inflation, high unemployment, trade deficits and capital flight. The state of Oaxaca, for example, is still one of the poorest states in Mexico. Due to the geography and climate, agriculture is only possible to a limited extent. In addition, extensive logging was carried out for a long time, which is why erosion is now very high. State aid is needed for reforestation. Little industry also means fewer jobs. Poverty is therefore greater here than in other parts of the country, which you also notice when you travel.
Still, the country has seen a turnaround since 1994 when it joined NAFTA (North A.merican F.ree Tstraight A.greement) and the OECD (Oorganization for E.conomic C.o-operation and D.evelopment) joined. There has also been a free trade agreement with the European Union since 2000. Since then, the Mexican government has also increasingly tried to stabilize the economic situation in Mexico, reduce dependence on the oil industry, increase social insurance programs and reform tax and pension systems. Increasing privatization and decentralization are also leading to a change.
Corruption is unfortunately still a big issue and is a huge hindrance to Mexican economic growth. In recent years the United States of Mexico has grown from an agricultural to an industrial state. Despite the fact that around 25% of the workforce still work in agriculture, agriculture only accounts for around 5% of GDP. The greater part of GDP is generated by services, trade and industry.
Mexico's agricultural products
Due to the topographical conditions, sometimes severe drought, soil erosion and rural exodus, it is becoming more and more difficult to be sufficiently productive agriculturally. That is why more and more staple foods are being imported, which in turn is economically harmful for small farmers. In general, the gap between cities and rural areas across the country is very large. The states with the highest percentage of agriculture are also currently the poorest areas. Almost everything that can be found in Mexican cuisine is grown, especially corn, beans, chillies, vegetables, sugar cane and fruit. Much of it is intended for export. There are also products such as coffee, cotton, sisal or meat.
Mexico is very rich in natural resources, which also has a positive effect on its position in world trade. The country has extensive crude oil reserves, the most extensive outside of the Arab region, which have not yet been fully used or explored, and is one of the most important and largest oil nations in the world. Mexico also leads the world ranking of silver producers. It is therefore also an important mining country with reserves of metal ores and minerals.
The most important trading partners for export and import
The most important trading partners in export are first and foremost the USA with over 80%, which makes Mexico heavily dependent on the USA as an economic partner, but also Canada, Japan and Germany. When it comes to imports, the countries mentioned are also at the forefront. Germany in particular recognizes a great deal of potential in Mexico as a Latin American partner and so numerous German companies are also settling in the country.
Canada and the US have become so important primarily because of the NAFTA agreement. However, the production of the "maquiladores" located on the border with the USA, which manufacture and export an enormous number of assembled finished products with cheap labor, is also increasing. Other main industrial areas are located along the Gulf Coast, as well as in Mexico City, in which mechanical engineering, the automotive industry, steel, paper and textile industries are the main pillars.
Tourism as an essential part of the Mexican economy
In the meantime, tourism has become one of the most important sources of foreign currency in the country and is constantly being expanded. The visitors come mainly from the USA as day trippers, long-term vacationers or for recreation, but increasingly also from Canada and Germany. Europeans are also interested in sun and sand, but above all in the country's culture. 9% of the Mexican population is employed in the tourism sector, and the trend is rising. A large part of the shadow economy can also be found here, carried out by outpatient traders, food sellers, craftsmen or even children. The projects in tourism are also getting bigger and more numerous, which has a negative effect on the flora and fauna of Mexico, but also in some cases on the population. In this area, ecotourism is therefore increasingly being used.
Book the most beautiful Mexico travel routes recommended by our Mexico experts.
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