Economy

As of April 2018, Mexico has the 15th largest nominal GDP (US$1.15 trillion) and the 11th largest by purchasing power parity (US$2.45 trillion). GDP annual average growth was 2.9% in 2016 and 2% in 2017. Agriculture has comprised 4% of the economy over the last two decades, while industry contributes 33% (mostly automotive, oil, and electronics) and services (notably financial services and tourism) contribute 63%. Mexico's GDP in PPP per capita was US$18,714.05. The World Bank reported in 2009 that the country's Gross National Income in market exchange rates was the second highest in Latin America, after Brazil at US$1,830.392 billion, which led to the highest income per capita in the region at $15,311. Mexico is now firmly established as an upper middle-income country. After the slowdown of 2001 the country has recovered and has grown 4.2, 3.0 and 4.8 percent in 2004, 2005 and 2006, even though it is considered to be well below Mexico's potential growth. The International Monetary Fund predicts growth rates of 2.3% and 2.7% for 2018 and 2019, respectively.

Although multiple international organizations coincide and classify Mexico as an upper middle income country, or a middle class country Mexico's National Council for the Evaluation of Social Development Policy (CONEVAL), which is the organization in charge to measure the country's poverty reports that a huge percentage of Mexico's population lives in poverty. According to said council, from 2006 to 2010 (year on which the CONEVAL published its first nationwide report of poverty) the portion of Mexicans who live in poverty rose from 18%-19% to 46% (52 million people). However, rather than Mexico's economy crashing, international economists attribute the huge increase in the percentage of population living below the country's poverty line to the CONEVAL using new standards to define it, as now besides people who lives below the economic welfare line, people who lacks at least one "social need" such as complete education, access to healthcare, access to regular food, housing services and goods, social security etc. were considered to be living in poverty (several countries do collect information regarding the persistence of said vulnerabilities on their population, but Mexico is the only one that classifies people lacking one or more of those needs as living below its national poverty line). Said economists do point out that the percentage of people living in poverty according to Mexico's national poverty line is around 40 times higher than the one reported by the World Bank's international poverty line (with said difference being the biggest in the world) and ponder if it would not be better for countries in the situation of Mexico to adopt internationalized standards to measure poverty so the numbers obtained could be used to make accurate international comparisons. According to the OECD's own poverty line (defined as the percentage of a country's population who earns 60% or less of the national median income) 20% of Mexico's population lives in a situation of poverty.

Among the OECD countries, Mexico has the second-highest degree of economic disparity between the extremely poor and extremely rich, after Chile – although it has been falling over the last decade, being one of few countries in which this is the case. 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%. The OECD also notes that Mexico's budgeted expenses for poverty alleviation and social development is only about a third of the OECD average. This is also reflected by the fact that infant mortality in Mexico is three times higher than the average among OECD nations whereas its literacy levels are in the median range of OECD nations. Nevertheless, according to Goldman Sachs, by 2050 Mexico will have the 5th largest economy in the world.

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 being set at $102.68 Mexican pesos (US$5.40) in 2019.

The electronics industry of Mexico has grown enormously within the last decade. Mexico has the sixth largest electronics industry in the world after China, United States, Japan, South Korea, and Taiwan. Mexico is the second-largest exporter of electronics to the United States where it exported $71.4 billion worth of electronics in 2011. The Mexican electronics industry is dominated by the manufacture and OEM design of televisions, displays, computers, mobile phones, circuit boards, semiconductors, electronic appliances, communications equipment and LCD modules. The Mexican electronics industry grew 20% between 2010 and 2011, up from its constant growth rate of 17% between 2003 and 2009. Currently electronics represent 30% of Mexico's exports.

Mexico produces the most automobiles of any North American nation. The industry produces technologically complex components and engages in some research and development activities. The "Big Three" (General Motors, Ford and Chrysler) have been operating in Mexico since the 1930s, while Volkswagen and Nissan built their plants in the 1960s. In Puebla alone, 70 industrial part-makers cluster around Volkswagen. In the 2010s expansion of the sector was surging. In 2014 alone, more than $10 billion in investment was committed. In September 2016 Kia motors opened a $1 billion factory in Nuevo León, with Audi also opening an assembling plant in Puebla the same year. BMW, Mercedes-Benz and Nissan currently have plants in constructuion.

The domestic car industry is represented by DINA S.A., which has built buses and trucks since 1962, and the new Mastretta company that builds the high-performance Mastretta MXT sports car. In 2006, trade with the United States and Canada accounted for almost 50% of Mexico's exports and 45% of its imports. During the first three quarters of 2010, the United States had a $46.0 billion trade deficit with Mexico. In August 2010 Mexico surpassed France to become the 9th largest holder of US debt. The commercial and financial dependence on the US is a cause for concern.

The remittances from Mexican citizens working in the United States account for 0.2% of Mexico's GDP which was equal to US$20 billion per year in 2004 and is the tenth largest source of foreign income after oil, industrial exports, manufactured goods, electronics, heavy industry, automobiles, construction, food, banking and financial services. According to Mexico's central bank, remittances in 2008 amounted to $25bn.

By 2050, Mexico could potentially become the world's fifth or seventh largest economy.

Communications

The telecommunications industry is mostly dominated by Telmex (Teléfonos de México), privatized in 1990. By 2006, Telmex had expanded its operations to Colombia, Peru, Chile, Argentina, Brazil, Uruguay, and the United States. Other players in the domestic industry are Axtel, Maxcom, Alestra, Marcatel, AT&T Mexico. Because of Mexican orography, providing a landline telephone service at remote mountainous areas is expensive, and the penetration of line-phones per capita is low compared to other Latin American countries, at 40 percent; however, 82% of Mexicans over the age of 14 own a mobile phone. Mobile telephony has the advantage of reaching all areas at a lower cost, and the total number of mobile lines is almost two times that of landlines, with an estimation of 63 million lines. The telecommunication industry is regulated by the government through Cofetel (Comisión Federal de Telecomunicaciones).

The Mexican satellite system is domestic and operates 120 earth stations. There is also extensive microwave radio relay network and considerable use of fiber-optic and coaxial cable. Mexican satellites are operated by Satélites Mexicanos (Satmex), a private company, leader in Latin America and servicing both North and South America. It offers broadcast, telephone and telecommunication services to 37 countries in the Americas, from Canada to Argentina. Through business partnerships Satmex provides high-speed connectivity to ISPs and Digital Broadcast Services. Satmex maintains its own satellite fleet with most of the fleet being designed and built in Mexico.

Major players in the broadcasting industry are Televisa, the largest Mexican media company in the Spanish-speaking world, TV Azteca and Imagen Televisión.

Energy

Energy production in Mexico is managed by the state-owned companies Federal Commission of Electricity and Pemex.

Pemex, the public company in charge of exploration, extraction, transportation and marketing of crude oil and natural gas, as well as the refining and distribution of petroleum products and petrochemicals, is one of the largest companies in the world by revenue, making US$86 billion in sales a year. Mexico is the sixth-largest oil producer in the world, with 3.7 million barrels per day. In 1980 oil exports accounted for 61.6% of total exports; by 2000 it was only 7.3%.

The largest hydro plant in Mexico is the 2,400 MW Manuel Moreno Torres Dam in Chicoasén, Chiapas, in the Grijalva River. This is the world's fourth most productive hydroelectric plant.

Mexico is the country with the world's third largest solar potential. The country's gross solar potential is estimated at 5kWh/m2 daily, which corresponds to 50 times national electricity generation. Currently, there is over 1 million square meters of solar thermal panels installed in Mexico, while in 2005, there were 115,000 square meters of solar PV (photo-voltaic). It is expected that in 2012 there will be 1,8 million square meters of installed solar thermal panels.

The project named SEGH-CFE 1, located in Puerto Libertad, Sonora, Northwest of Mexico, will have capacity of 46.8 MW from an array of 187,200 solar panels when complete in 2013. All of the electricity will be sold directly to the CFE and absorbed into the utility's transmission system for distribution throughout their existing network. At an installed capacity of 46.8 MWp, when complete in 2013, the project will be the first utility scale project of its kind in Mexico and the largest solar project of any kind in Latin America.

Science and technology

The National Autonomous University of Mexico was officially established in 1910, and the university became one of the most important institutes of higher learning in Mexico. UNAM provides world class education in science, medicine, and engineering. Many scientific institutes and new institutes of higher learning, such as National Polytechnic Institute (founded in 1936), were established during the first half of the 20th century. Most of the new research institutes were created within UNAM. Twelve institutes were integrated into UNAM from 1929 to 1973. In 1959, the Mexican Academy of Sciences was created to coordinate scientific efforts between academics.

In 1995, the Mexican chemist Mario J. Molina shared the Nobel Prize in Chemistry with Paul J. Crutzen and F. Sherwood Rowland for their work in atmospheric chemistry, particularly concerning the formation and decomposition of ozone. Molina, an alumnus of UNAM, became the first Mexican citizen to win the Nobel Prize in science.

In recent years, the largest scientific project being developed in Mexico was the construction of the Large Millimeter Telescope (Gran Telescopio Milimétrico, GMT), the world's largest and most sensitive single-aperture telescope in its frequency range. It was designed to observe regions of space obscured by stellar dust.

Tourism

As of 2017, Mexico was the 6th most visited country in the world and had the 15th highest income from tourism in the world which is also the highest in Latin America. The vast majority of tourists come to Mexico from the United States and Canada followed by Europe and Asia. A smaller number also come from other Latin American countries. In the 2017 Travel and Tourism Competitiveness Report, Mexico was ranked 22nd in the world, which was 3rd in the Americas.

The coastlines of Mexico harbor many stretches of beaches that are frequented by sunbathers and other visitors. According to national law, the entirety of the coastlines are under federal ownership, that is, all beaches in the country are public. On the Yucatán peninsula, one of the most popular beach destinations is the resort town of Cancún, especially among university students during spring break. Just offshore is the beach island of Isla Mujeres, and to the east is the Isla Holbox. To the south of Cancun is the coastal strip called Riviera Maya which includes the beach town of Playa del Carmen and the ecological parks of Xcaret and Xel-Há. A day trip to the south of Cancún is the historic port of Tulum. In addition to its beaches, the town of Tulum is notable for its cliff-side Mayan ruins.

On the Pacific coast is the notable tourist destination of Acapulco. Once the destination for the rich and famous, the beaches have become crowded and the shores are now home to many multi-story hotels and vendors. Acapulco is home to renowned cliff divers: trained divers who leap from the side of a vertical cliff into the surf below.

At the southern tip of the Baja California peninsula is the resort town of Cabo San Lucas, a town noted for its beaches and marlin fishing. Further north along the Sea of Cortés is the Bahía de La Concepción, another beach town known for its sports fishing. Closer to the United States border is the weekend draw of San Felipe, Baja California.

Transportation

The roadway network in Mexico is extensive and all areas in the country are covered by it. The roadway network in Mexico has an extent of 366,095 km (227,481 mi), of which 116,802 km (72,577 mi) are paved. Of these, 10,474 km (6,508 mi) are multi-lane expressways: 9,544 km (5,930 mi) are four-lane highways and the rest have 6 or more lanes.

Starting in the late nineteenth century, Mexico was one of the first Latin American countries to promote railway development, and the network covers 30,952 km (19,233 mi). The Secretary of Communications and Transport of Mexico proposed a high-speed rail link that will transport its passengers from Mexico City to Guadalajara, Jalisco. The train, which will travel at 300 kilometres per hour (190 miles per hour), will allow passengers to travel from Mexico City to Guadalajara in just 2 hours. The whole project was projected to cost 240 billion pesos, or about 25 billion US$ and is being paid for jointly by the Mexican government and the local private sector including the wealthiest man in the world, Mexico's billionaire business tycoon Carlos Slim. The government of the state of Yucatán is also funding the construction of a high speed line connecting the cities of Cozumel to Mérida and Chichen Itza and Cancún.

Mexico has 233 airports with paved runways; of these, 35 carry 97% of the passenger traffic. The Mexico City International Airport remains the busiest in Latin America and the 36th busiest in the world transporting 45 million passengers a year.

Water supply and sanitation

This section needs to be updated. Please update this article to reflect recent events or newly available information. (November 2020)

Among the achievements is a significant increase in access to piped water supply in urban areas (88% to 93%) as well as in rural areas (50% to 74%) between 1990 and 2010. Additionally, a strong nationwide increase in access to improved sanitation (64% to 85%) was observed in the same period.citation needed Other achievements include the existence of a functioning national system to finance water and sanitation infrastructure with a National Water Commission as its apex institution; and the existence of a few well-performing utilities such as Aguas y Drenaje de Monterrey.

The challenges include water scarcity in the northern and central parts of the country; inadequate water service quality (drinking water quality; 11% of Mexicans receiving water only intermittently as of 2014); poor technical and commercial efficiency of most utilities (with an average level of non-revenue water of 43.2% in 2010); an insufficient share of wastewater receiving treatment (36% in 2006); and still inadequate access in rural areas. In addition to on-going investments to expand access, the government has embarked on a large investment program to improve wastewater treatment.