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Economy of Mexico



Mexico has the 13th largest nominal GDP and the 11th largest by purchasing power parity. GDP annual average growth for the period of 1995–2002 was 5.1%. Foreign debt decreased to less than 20% of GDP. 17% of the population lives below Mexico's own poverty line, ranking behind Kazakhstan, Bulgaria and Thailand. The overall poverty rate however is 44.2%, while a full 70% lack one of the 8 economic indicators used to define poverty by the Mexican government. From the late 1990s, the majority of the population has been part of the growing middle class. But from 2004 to 2008 the portion of the population who received less than half of the median income has risen from 17% to 21% and the absolute levels of poverty have risen considerably from 2006 to 2010, with a rise in persons living in extreme or moderate poverty rising from 35 to 46% (52 million persons). This is also reflected by the fact that infant mortality in Mexico is three times higher than the average among OECD nations, and the literacy levels are in the median range of OECD nations. The Mexican economy is expected to nearly triple by 2020. According to Goldman Sachs, by 2050 Mexico will have the 5th largest economy in the world.

According to the OECD, worldwide Mexico is the country with the second highest degree of economic disparity between the extremely poor and extremely rich, beaten only by Chile – although it has been falling over the last decade. The bottom ten percent in the income hierarchy disposes of 1.36% of the country's resources, whereas the upper ten percent dispose of almost 36%. OECD also notes that Mexico's budgeted expenses for poverty alleviation and social development is only about a third of the OECD average – both in absolute and relative numbers.

According to a 2008 UN report the average income in a typical urbanized area of Mexico was $26,654, while the average income in rural areas just miles away was only $8,403. Daily minimum wages are set annually by law and
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