Economic Analysis of Mexico
Mexico's membership of the North American Free Trade Agreement (NAFTA) since 1994 has attracted major investment from foreign countries. The focus of the foreign investment is on manufacturing. Nearly all the world's major companies are now present in Mexico. For example, according to the Economic Development Secretary from the Mexican state of Baja California, the state hosts 90 companies from Japan, 25 Taiwanese companies, five from Hong Kong, four from Singapore, and three from Malaysia. Other Mexican states boast similar numbers to Baja California in terms of foreign company presence. The United States receives 85 % of Mexico's exports
The expansion of the Mexican economy has increased jobs and increased disposable income, although salaries are still 15 percent lower than they were before 1994. Other exports are automotive vehicles, auto parts, and clothing. Since then, there has been a major economic shift in Mexico from being an oil-based economy to a manufacturing-based economy. Contribution to GDP in MexicoSource: World Bank 1999 Mexican President Fox, a former Coca-Cola executive, is widely seen as pro-United States and pro-NAFTA, but he has also tried to strengthen Mexico's ties with Central American countries. Other countries that are main sources of Mexico's imports include Canada, Japan, and Spain. Exports in Mexico increased by about $17 billion from 1999 to 2000, and electronic equipment and appliances make up the majority of them. Main destinations are the US, Canada, Latin America, the European Union, and East Asia. In addition to NAFTA, Mexico signed a comprehensive free trade agreement with the European Union in 2000. Mexico has overtaken Costa Rica as Latin America's fastest growing economy. However, the economy is likely to slow down as an effect of the sluggish United States economy. and is the source of 75% of Mexico's imports. Imports include machinery and transport equipment, agricultural products, chemicals, iron, steel, processed foods, petroleum products, beverages, and tobacco. Fox plans on economic growth of 7% by 2006, lowering inflation, and balancing the Mexican budget by 2004.
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