Mexico has a population of 118.4 million people and a GDP of $1.8 trillion with modest growth rates. It has a diversified economy transitioning from agriculture and commodities to manufacturing and services. Mexico has free trade agreements with the US and Canada, with the US being its largest trading partner by far. Recent presidential reforms have aimed to strengthen Mexico's economy through measures like labor market reforms, tax reforms, and allowing foreign investment in the energy sector. While corruption and cartel violence remain issues, the document recommends investing in Mexico given recent structural reforms that have improved its economic outlook.

1. Mexico
Sarah Lopez, Zack Holden, Brenna Gomez, and Ben Pompilus

2. Mexico’s Economic Overview
● Population- 118.4 million
● GDP (PPP)
○ $1.8 trillion
○ 1.1% growth
○ 1.8% 5 year compound annual growth
○ 15,563 per capita
● Unemployment 5.0%
● Inflation 3.8%
● FDI Inflow 38.3 billion

3. Mexico’s Economic Overview
Continued...
● Economic freedom score 66.4
● 59th freest country
● Declined by .4 since last year
● Ranked third out of the three countries in the North
America region, score is well above the world average
● Over last 30 years, Mexico has transitioned from a
commodity- and agricultural-based economy to one
dominated by manufacturing and services.

4. Surrounding Countries Freedom Scores
● US- 76.2, 12th freest
● Guatemala- 60.4, 87th freest
● Belize- 56.8, 117th freest

5. Exports
● USA (70%), Canada (5.4%), and Spain (2.1%)
● 15th largest
● Top 5 exports
● Furskins and artificial furs

6. Imports
● USA (47%) China (17%) , and Japan (4.9%)
● Top 5 imports
● Collector items, art, antiques

7. Surrounding Countries Exports + Imports
Guatemala
● Export- TCT 11.4B
● Import- TCT 16.8B
United States
● Export- TCT 1.23T
● Import- TCT 1.8T
Belize
● Export- TCT 490M
● Import- TCT 1.25B
Mexico
● Export- TCT 349B
● Import- TCT 295B

8. Corruption
● Fed by government
● Exist among all levels of society
● Billions of narco-dollars are crossed over the
border each year from the United States
● Courts are ineffective
● Government spending has decreased

9. Mexican Presidency
● Enrique Peña Nieto
● Occupied positions in government
● President from 2012-Present Day

10. Presidential Reforms
● passed labor reform that makes it simpler for businesses to hire/fire employees
● passed educational reform to make the system based more on quality and value
● new legislation regarding telecommunications and the media have been created to try and create a broadened
view and availability
● recent tax reforms should increase government income while also redistributing the tax burden
○ raising rates on the wealthiest
○ taxing capital gains and dividends
○ creating universal pensions and unemployment insurance
● focused on energy reforms, for example foreign investment in energy
● government pursued financial changes to motivate lenders to extend credit
● Mexico can take advantage of its greatest potential with a strong economic base, this includes two important
economic ties: North America and the Pacific Alliance. The most important region for Mexico is and will be North
America.

11. Mexico and US Relationship
● most important region for Mexico is and will continue to
be the US
● after NAFTA, intra regional trade has multiplied
● half of this trade crosses US-Mexican border annually

12. Energy Reforms
● Two state-owned companies Federal
Commission of Electricity and Pemex
● Energy has remained as the one
important economic sectors still in state
hands
● Sixth largest oil producer
● Exports 61.6% of that oil
● Estimated to increase long term oil
production 75%

13. Conclusion/Recommendation
● Invest into Mexico!
● Impressive number of structural reforms → lifted the image according to
international investors
● Energy reforms
● The oil sector, the education system, competition and labor laws, are going
through significant changes that will be beneficial for Mexico.
● International markets seem to have realized that much of the groundwork
has been laid for a brighter future, even though Mexico’s GDP was not the
best
● Today, Mexico’s fiscal position is solid, unemployment is low and the
economy has gained in competitiveness.