CURRENCY
The PesoTHE ECONOMY
Mexico enjoys a strong position among developing
nations. Its 1998 GDP topped $400 billion dollars.
Despite the setback of a major currency devaluation in
early 1995, the economy is rebounding under a rejuvenated
market oriented system, with less government
interference and protectionism. These reforms
have
generated a renewal of foreign support, stimulating
investment in several important sectors.
The
Mexican economy achieved the following advances in 2000:
* The
economy grew by 5.8% (The economy is expected to grow by
7% in 2000.)
* Mexico exports exceeded $120 billion in 2000, a new
record high.
* Open unemployment fell to 3.1%. More than 2 million
permanent new jobs were created in 2000.
* Inflation climbed in 1998 to 18.6% from 15.7% in 1997.
The target for 1999 is 13%.
* International reserves jumped to over $50 billion at
the end of 1999, up from $17.5 billion in 1996.
* Mexico became the second largest trading partner for
the U.S. (Surpassing Japan).
Despite
post devaluation economic hardship, Mexicos economy
remains quite diverse and fundamentally sound. Mining
manufacturing, petroleum (80 billion barrels in reserves!
), electronics, textiles and tourism are all developed
industries.
In fact,
Mexico produces more corn than India, more beer than
Australia, more steel than Sweden, more glass
than
Austria, and more oil than the United Arab Emirates.
Paradoxically, Mexico has more millionaires than Germany,
yet half its population is supported by traditional low
technology industry and agriculture.
By
signing the North American Free Trade Agreement (NAFTA),
Mexico joined the U.S. and Canada in forming the largest
single market in the world : 8 million square miles, 360
million people, and 6.8 trillion in annual economic
production.
During
NAFTAs first five years intra-regional trade
between the U.S., Canada and Mexico grew to nearly $500
billion.
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