turing and services, and both large-scale and
traditional agriculture. In the 1980s Mexico experienced severe economic
difficulties: the nation accumulated large external debts as world
petroleum prices fell; rapid population growth outstripped the domestic
food supply; and inflation, unemployment, and pressures to emigrate
became more acute. Growth in national output dropped from 8% in
1980 to 1.1% in 1988 and 2.5% in 1989. The US is Mexico's major
trading partner, accounting for two-thirds of its exports and
imports. After petroleum, border assembly plants and tourism are the largest
earners of foreign exchange. The government, in consultation with international
economic agencies, is implementing programs to stabilize the economy
and foster growth.

GDP: $187.0 billion, per capita $2,165; real growth rate 2.5% (1989)

Inflation rate (consumer prices): 20% (1989)

Unemployment rate: 20% (1989 est.)

Budget: revenues $36.1 billion; expenditures $56.1 billion, including
capital expenditures of $7.7 biilion (1988)

Exports: $23.1 billion (f.o.b., 1989); commodities--crude oil,
oil products, coffee, shrimp, engines, cotton; partners--US 66%,
EC 16%, Japan 11%

Imports: $23.3 billion (c.i.f., 1989); commodities--grain,
metal manufactures, agricultural machinery, electrical equipment;
partners--US 62%, EC 18%, Japan 10%

External debt: $95.1 billion (1989)

Industrial production: growth rate 1.3% (1988)

Electricity: 26,900,000 kW capacity; 103,670 million kWh produced,
1,200 kWh per capita (1989)

Industries: food and beverages, tobacco, chemicals, iron and steel,
petroleum, mining, textiles, clothing, transportation equipment, tourism

Agriculture: accounts for 9% of GDP and over 25% of work force; large
number of small farms at subsistence level; major food crops--corn,
wheat, rice, beans; cash crops--cotton, coffee, fruit, tomatoes; fish
catch of 1.4 million metric tons among top 20 nations (1987)

Illicit drugs: illicit cultivation of opium poppy and cannabis
continues in spite of government eradication efforts; major link in
chain of countries used to smuggle cocaine from South American
dealers to US markets

Aid: US commitments, including Ex-Im (FY70-88), $3.0 billion; Western
(non-US) countries, ODA and OOF bilateral commitments (1970-87), $6.8
billion; Communist countries (1970-88), $110 million

Currency: Mexican peso (plural--pesos);
1 Mexican peso (Mex$) = 100 centavos

Exchange rates: market