42
FAX:
[52] (5) 511-9980, 208-3373
consulates general:
Ciudad Juarez, Guadalajara, Monterrey, Tijuana
consulates:
Hermosillo, Matamoros, Mazatlan, Merida, Nuevo Laredo
Flag:
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

Overview:
Mexico's economy is a mixture of state-owned industrial facilities (notably
oil), private manufacturing 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, however, has recovered, rising from 1.4% in 1988
to 4% in 1990 and 3.6% in 1991 and coming in at 2.6% in 1992. The US is
Mexico's major trading partner, accounting for almost three-quarters 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, has been implementing programs to
stabilize the economy and foster growth. For example, it has privatized more
than two-thirds of its state-owned companies (parastatals), including banks.
In 1991-92 the government conducted negotiations with the US and Canada on a
North American Free Trade Agreement (NAFTA), which was still being discussed
by the three countries in early 1993. In January 1993, Mexico replaced its
old peso with a new peso, at the rate of 1,000 old to 1 new peso.
Notwithstanding the palpable improvements in economic performance in the
early 1990s, Mexico faces substantial problems for the remainder of the
decade - e.g., rapid population growth, unemployment, and serious pollution,
particularly in Mexico City.
National product:
GDP - exchange rate conversion - $328 billion (1992 est.)
National product real growth rate:
2.6% (1992)
National product per capita:
$3,600 (1992 est.)
Inflation rate (consumer prices):
11.9% (1992)
Unemployment rate:
14%-17% (1991 est.)
Budget:
revenues $58.9 billion; expenditures $48.3 billion, including capital
expenditures of $6.5 billion (1991); figures do not include state-owned
compan