Mexico has one of the largest economies in the world, with GDP largely comprised of household consumption and government spending. Inflation has been low and stable in recent years. Mexico ranks 39th in ease of doing business, with corporate taxes at 30% from 2010-2014. Foreign direct investment and trade have grown steadily, with the US as the largest trading partner. India and Mexico have sought to increase bilateral trade and investment through agreements like a 2007 memorandum of understanding.

1. Economic
analysis
of
Mexico
By:
Shrey
Patel
Section B 14bsp0963

2. Introduction
• Mexico is a federal republic in North America.
• Has estimated population of over 122 million.
• It is bordered on the north by the United States; on the
south and west by the Pacific Ocean; on the southeast
by Guatemala, Belize, and the Caribbean Sea; and on the
east by the Gulf of Mexico.
• Mexico has one of the world's largest economies. It is the
tenth largest oil producer in the world, the largest silver
producer in the world.

3. GDP and GNI

4. Components of GDP
9%
16%
51%
-24%
General government final consumption expenditure (% of GDP) Gross capital formation (% of GDP)
Household final consumption expenditure, etc. (% of GDP) Net export of goods and services(% of GDP)

5. Inflation level of the economy
0
1
2
3
4
5
6
2004
[YR2004]
2005
[YR2005]
2006
[YR2006]
2007
[YR2007]
2008
[YR2008]
2009
[YR2009]
2010
[YR2010]
2011
[YR2011]
2012
[YR2012]
2013
[YR2013]
Inflation, consumer prices (annual %)

6. Ease of doing business
• Currently ranked 39th in ease of doing business index.
• According to data collected by Doing Business, starting a
business there requires 6 procedures, takes 6.3 days.
• Corporate tax is 30%(‘10-’14)

7. Monetary and Fiscal policy
• It has 3% interest rate.
• With new reformed tax bill proposed in 2014 budget,
policy makers aim to increase tax revenues by 1.4% of
GDP next year and by 2.9% of GDP by the end of 2018.
• The government proposes to increase the fiscal deficit to
1.5% of GDP in 2014

8. Trends in foreign trade
• Top 5 trading partners are: (1)United States[83.12%]
(2)Canada[2.45%]
(3)Germany[1.76%]
(4)Spain[1.51%]
(5)Brazil[1.14%]

9. FDI
0
0.5
1
1.5
2
2.5
3
3.5
2005
[YR2005]
2006
[YR2006]
2007
[YR2007]
2008
[YR2008]
2009
[YR2009]
2010
[YR2010]
2011
[YR2011]
2012
[YR2012]
2013
[YR2013]
Foreign direct investment, net inflows (% of GDP)
3.222327217
Foreign direct investment, net outflows (% of GDP) ..
40916 US million $ : Net FDI from USA in Q3 2014

10. Economic relation with India
• India’s trade with Mexico has grown consistently at a
good pace over the years.

11. • A Memorandum of Understanding (MOU) was
signed between India and Mexico on 21st
May, 2007 at New Delhi by Minister of
Commerce and Industry and Minister of
Economy, Mexico for the establishment of a
Bilateral High Level Group on Trade ,
Investment and Economic Cooperation.
• The functions of the HLG mainly include
promoting bilateral cooperation, maintaining
liaison in the economic, commercial, technical
and other related fields and information
exchange.