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How Does Economy Affect The Mexican Economy

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The Mexican economy is currently the 15th largest economy in the world with a GDP of $2.2 trillion (“Index of Economic Freedom”, 2017). In comparison, the United States had a GDP of $18.57 trillion in 2016 (“United States GPD”, 2017). Fears of a Trump presidency initially caused predictions for a slower GDP growth in 2017, but as fears are eased Mexico’s finance ministry has increased their predictions for the GDP growth to an estimated 1.5% to 2.5% increase for 2017, raised from the previous estimate of 1.3% to 2.3% (Harrup, 2017). The GDP growth rate continues to increase from previous years. In 2015, the GDP was measured at 2.3%, which was a 0.9% increase from 2013 (“Mexican GDP Growth Rate” 2017). The economy also benefits from free…show more content…
Because of Mexico’s large manufacturing industry, the country produces and exports the same amount of goods as all other Latin American countries combined (Amadeo, 2017). Another dependent factor of Mexico’s economy is tourism. It is the eighth most visited country in the world and ranks number one among visitors to Latin America. A total of 8.9% of the country’s GDP comes from tourism income which is the nation’s fifth biggest source of revenue (Wood, 2017). Tourism also helps create jobs in Mexico, but it is generally confined to a small area of resort towns along the Caribbean coast such as Cancun, the Riviera Maya, and Los Cabos in the Baja Peninsula on the Pacific Ocean coast. The unemployment rate in Mexico is currently at 4.5% which is generally considered low. Mexico splits its criteria to be considered living in poverty into two categories: moderate poverty and extreme poverty. The Mexican government estimates that 33% of its population lives in moderate poverty while 9% live in extreme poverty (“Mexico”, 2017). Mexican people also face a high degree of income inequality, with the second highest level of any country of economic disparities between the extremely rich and the extremely poor, according to the Organization for Economic Co-operation and Development (OECD) which measures economic progress and world trade. The richest 1% of the country hold 43% of Mexico’s
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