Mexico started to industrialize in the late 19th century. Following it’s Revolution in the 2nd decade of the twentieth it settled into a long period of one party rule under the PRI. It followed the import substitution model and the economy grew steadily for several decades. In the 1970's the limits of this growth model were reached but Mexico was able to borrow from international banks for several more years until in 1982 it declared it’s inability to pay the interest on the debts contracted triggering the Latin American debt crisis.

The 1980's were the lost decade in Mexico and throughout Latin America as extensive retrenchment was required in order to meet external debt obligations. By the end of that decade, through Brady Plan relief on the debt and economic restructuring the debt crisis had eased and countries were able to focus once again on their development priorities. In Mexico this led to the North American Free Trade Agreement which meant the abandonment of the internally focused development model and integration into the US and Canadian markets.

Industrially Mexico has been transformed. Instead of producing out of date products for the internal market it now makes products that are competitive throughout the NAFTA area. On the other hand it’s domestic market is now penetrated by efficient producers from the US and Canada. On the whole the rate of economic growth since NAFTA has been a bit disappointing at around 3% pa even though during this period it has become one of the world’s largest exporting economies. There are effectively two different economies in Mexico, one internationally competitive and the other inwardly focused and marginal.

The challenge going forward is to try to integrate these two economies into one. In this regard there is considerable progress in broadening the tax base in recent years and a key goal will be to reduce the size of the informal economy in favour of the formal economy by encouraging individuals and businesses to register.
The other critical issue is the drugs war. The drug cartels dominate large parts of the economy and mechanisms are required to improve the ability of the State to counter them. 

Contents

Introduction

The Modern Period

The Current Era

The Modern State

Economics from the Ground Up

Political Systems

Trade Theory

The EU as a Model of Integration

Industrialisation

Synopsis

Data                                   

            World GDP                                           2018

            World GDP PPP                                   2018

            GDP per capita ppp                           2018

            Exports   &  Imports                          2018

            Container Traffic                 2010 & 2018

            Oil Production                                    2018

            Migrant Remittances                       2018

            Tourism Statistics                             2017

            Tourism Americas                             2017              

Latin America         

Background

The US and Latin America

Economy

The EU and Latin America

Mercosur

World Exports                                      2000-2018

Mexico                           

            Introduction

            Political System

            1982 Debt Crisis

            Tequila Crisis

            NAFTA

            Motor Industry

            Oil & Gas

            Social Security & Taxes

            Health & Housing

            State Finances

            Main Issues

            Political Challenges

            Charts & Chart Commentary

Sources

82 pages