d 1997. In 1998,
private consumption became the leading driver of growth, which was
accompanied by increased employment and higher wages. The government
expects the economy to slow in 1999 because of low commodity prices,
tighter international liquidity, and slacker demand for exports.
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. Trade with the US and Canada has
nearly doubled since NAFTA was implemented in 1994. Mexico is
pursuing additional trade agreements with most countries in Latin
America and with the EU to lessen its dependence on the US.

GDP: purchasing power parity--$815.3 billion (1998 est.)

GDP--real growth rate: 4.8% (1998 est.)

GDP--per capita: purchasing power parity?$8,300 (1998 est.)

GDP--composition by sector:
agriculture: 6%
industry: 26%
services: 68% (1997)

Population below poverty line: 27% (1998 est.)

Household income or consumption by percentage share:
lowest 10%: 1.8%
highest 10%: 36.6% 1996)

Inflation rate (consumer prices): 18.6% (1998)

Labor force: 37.5 million (1998)

Labor force--by occupation: services 28.8%, agriculture, forestry,
hunting, and fishing 21.8%, commerce 17.1%, manufacturing 16.1%,
construction 5.2%, public administration and national defense 4.4%,
transportation and communications 4.1%

Unemployment rate: 2.6% (1998) urban; plus considerable
underemployment

Budget:
revenues: $117 billion
expenditures: $123 billion, including capital expenditures of $NA
(1998 est.)

Industries: food and beverages, tobacco, chemicals, iron and
steel, petroleum, mining, textiles, clothing, motor vehicles,
consumer durables, tourism

Industrial production growth rate: 6% (1998 est.)

Electricity--production: 154.395 billion kWh (1996)

Electricity--production by source:
fossil fuel: 71.46%
hydro: 20.16%
nuclear: 4.85%
other: 3.53% (1996)

Electricity--consumption: 154.448 billion kWh (1996)

Electricity--exports: 1.263 billion kWh (1996)

Electricity--imports: 1.316 billion kWh (1996)

Agriculture--products: corn, wheat, soybeans, rice, beans, cotton,
coffee, fruit, tomatoes; beef, poultry, dairy products; wood products

Exports: $117.5 billion (f.o.b., 1998), includes in-bond
industries (assembly plant operations w