Capital City: Mexico
	It is %T:%M %A in Mexico City It is %T:%M %A in Culiacán It is %T:%M %A in Tijuana

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Economic trends

Mexico is highly dependent on exports to the U.S., which account for almost a quarter of the country’s GDP. As the U.S. economy has emerged from its downturn in 2001, so has the Mexican economy; with its GDP growing at 4.8% in 2006 and 3% in 2007. Also rise in the international oil prices and relaxation in the country’s monetary policy has contributed to the economy’s revival. The weak point of the Mexican economy is its heavy dependence on the US exports: 80% of Mexican foreign trade is carried out with the US. Both unemployment (around 3%) and inflation (around 3.5%) are under control.

Main branches of industry

Agriculture accounted for 4% of GDP and employs nearly 16% of the active population. However, poor availability of credit continues to plague agriculture. Mexico ranks among the world's largest producers of coffee, sugar, corn and oranges. Mexico is among the world's leading producers of many minerals, including silver, fluorite, zinc, and mercury, and its oil & gas reserves are one of its most valuable assets (5th largest oil producer in the world). The free economic zones dedicated to US exports called ‘Maquiladoras’, which were early driving the economy, are now going through crisis because of the competition from low cost Asian & East European countries. As a result manufacturing sector has dramatically slowed down in recent years and now contributes around 15% to the country’s GDP. However the building & construction sector is doing well, fuelled by boom in housing finance. Livestock raising and fishing are also significant economic activities. The services sector contributes nearly 70% to the GDP.

International trade

Mexico is one of the world’s most trade dependent countries. The share of foreign trade in countries GDP is nearly 60%. Mexico is a member of the NAFTA- free trade agreement unifying the United States, Mexico and Canada since 1994. The country signed a free trade agreement with the European Union in 2000 and the commercial agreement signed with Japan came into force on April 2005. USA buys 80% of its exports. The top three export partners are: the USA, Canada and Spain. The commodities mainly exported are electric & electronic equipment, vehicles, mineral fuels & oils, and machinery. The top three import partners are: the USA, China and Japan. It mainly imports electrical & electronic equipment, machinery, vehicles, plastics and mineral fuels & oils.