“In India, people ask you about China, and, in China, people ask you about India: Which country will become the more dominant economic power in the 21st century? I now have the answer: Mexico.” Thomas Friedman, New York Times.
When you think about Mexico, a lot of different things might come to mind. But here are 10 surprising facts you many not know about this country’s economy:
- Mexico has free-trade agreements covering 44 countries, which is more than the U.S (20 partners) and China (18) combined.
- Few modern Mexican presidents can claim to have championed as many deep reforms and succeeded. Peña Nieto has pushed a dozen reform bills through Congress, five of which required amendments to the constitution. Forbes Magazine states he’s accomplished more in his first year in office than his three most recent predecessors combined.
- The middle class in Mexico includes 39.2 percent (44 million people) of the country’s total population. Mexico’s middle class increased 11.4 percent between 2000 and 2010
- According to Reuters, Mexico’s primary exports are manufactured goods, and almost 80 percent go to the United States.
- Over the past five years investors in the Mexican stock market have enjoyed three times the returns of the much-hyped Brazilian equities.
- Mexico is creating jobs at an unprecedented rate — more than two million since early 2010. Not surprisingly, 7 million jobs are in tourism. Tourism accounts for approximately 9 percent of Mexico’s gross domestic product.
- Standard & Poor’s recently boosted Mexico’s credit rating to an A. They trumpeted their energy reforms as a “watershed moment” for the country.
- Mexico has a lot of people, and good demographics. Over the next 20 years — unlike most Western countries — Mexico will see a rise in the number of people eligible to work, relative to those not working.
- Mexico is on track to become the United States’ No. 1 source of imported cars by the end of next year, overtaking Japan and Canada. Because Mexico is a major auto manufacturer, 89 of the world’s top 100 auto parts makers have production in the country.
- Meet the MINTs! Coined by British economist Jim O’Neill, the term refers to Mexico, Indonesia, Nigeria and Turkey. These countries share the prediction of large surges of wealth and rapid economic growth over the next decade. David Rees from Capital Economics believes Mexico should swing from being Latin Americas worst performer, to its best.
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