Mexico Economy And Gdp Of Mexico

769 WordsJun 6, 20154 Pages
MEXICO ECONOMY AND GDP Mexico is the 15th largest nominal GDP in the world and the 11th largest by Purchasing Power Parity which is estimated at $2.2602 trillion in 2015 and a $1.3673 trillion in nominal exchange rate. Its annual average growth from 1995 – 2000 was 5.1% but dropped to 3.02 % over the next 10 years. In the wake of the global financial crisis, Mexico GDP further took a nose-drive by a 6.2% decrease; the economy is gradually normalizing as the GDP expanded to at 2.1% in 2014 a two year consecutive growth. It is expected to modestly rebound in 2015 to 2.7% before averaging a robust 3.5% between the fiscal year 2016-2019 this growth when compared with other regional peers is slow, a reflection of the country weak trade ties with Asia. (EIU, 2015) But unlike most countries, it was able to maintain a moderate public debt of 45% of its GDP and a low but permanent current account deficit of 0.8% which can mainly be attributed to the country’s commercial surplus with the United States and a deficit with Asia, China and the rest of the world. It has been argued that successful implementation of structural reform could potentially eliminate some competitive bottleneck thus boosting the economy to 4-5% by 2019 (export.gov) but this is an unlikely achievement in light of the persisting institutional weakness towards implementing government reform program. The country trade balance would suffer from lower oil export as a result of decline in population and weaker oil price
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