dland (Texas), Nogales (Arizona), Orlando, Oxnard
(California), Philadelphia, Portland (Oregon), St. Louis, Salt Lake
City, San Bernardino, San Jose, Santa Ana (California), Seattle

Diplomatic representation from the US:
chief of mission: Ambassador (vacant); Charge Charles BRAYSHAW
embassy: Paseo de la Reforma 305, Colonia Cuauhtemoc, 06500 Mexico,
Distrito Federal
mailing address: P. O. Box 3087, Laredo, TX 78044-3087
telephone: [52] (5) 211-0042
FAX: [52] (5) 511-9980, 208-3373
consulate(s) general: Ciudad Juarez, Guadalajara, Monterrey, Tijuana
consulate(s): Hermosillo, Matamoros, Merida, Nuevo Laredo

Flag description: three equal vertical bands of green (hoist side),
white, and red; the coat of arms (an eagle perched on a cactus with a
snake in its beak) is centered in the white band

@Mexico:Economy

Economy-overview: Mexico has a free market economy with a mixture of
modern and outmoded industry and agriculture, increasingly dominated
by the private sector. The number of state-owned enterprises in Mexico
has fallen from more than 1,000 in 1982 to fewer than 200 in 1998. The
ZEDILLO administration is privatizing and expanding competition in sea
ports, railroads, telecommunications, electricity, natural gas
distribution, and airports. The Mexican economy is in its third year
of recovery from the recession of 1995, which was touched off by a
financial crisis. After declining 6.2% in 1995, real GDP grew 5.1% in
1996 and 7.3% in 1997 and is expected to rise by 5% in 1998. A strong
export sector helped to cushion the economy's decline in 1995 and led
the recovery in 1996 and 1997. Private consumption spending in 1998
probably will rise by at least 4% on the strength of increased
employment and rising real wages, and the troubled banking sector is
likely to increase lending for the first time in three years. Despite
the spillover from the Asian crisis, the medium-term outlook for
Mexico remains positive, with government and private sector economists
projecting average annual growth of 4% to 5% through the year 2000.
Mexico still needs to overcome many structural problems as it strives
to modernize its economy and raise living standards. Income
distribution is very unequal with the top 20% of income earners
accounting for 55% of income. The inefficient agricultural sector
employs 20% to 25% of the labor force but produces only 8% of GDP.
Trade with the United States and Canada has nearly doubled since NAFTA
was