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 Instead of producing out of date products for the internal market it now makes products that are competitive throughout the NAFTA area.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
Mexico 2020
- Product Code: ISSN 2014-5063 (2020) No 14
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