Gross National Product (GNP): $550bn

Exchange rates against the US$ over the last year: 10.42 Mexican pesos (9.945)

SCORE CARD

World GNP ranking: 10th GNP per capita: $5530 Balance of payments: –$14.1bn Inflation: 5% Unemployment: 3%

Strengths

Global oil producer, with substantial reserves. Extensive mineral resources. Strong foreign direct investment. Diversification of exports. NAFTA membership. Low overheads.

Weaknesses

Debt burden. Vulnerable currency. Corruption. Affected by oil price changes and US slowdown. Weak tax system.

Profile

While in power, the PRI effectively ran the economy. The debt crisis of the 1980s, however, forced privatizations. The 1994 peso crisis needed a US-led $20 billion international bailout and resulted in a severe slump. The Zedillo government launched tough reforms, but a global loss of confidence in emerging markets affected growth. Tighter fiscal management was rewarded by 2000, when investor confidence improved. The Fox government's tight fiscal and monetary stance secured the approval of the IMF and major credit agencies, giving the country greater access to cheaper foreign capital. However, pledges on social spending and poverty relief suffered, and promises of large job creation projects also went unfulfilled, as the export-led economy echoed the slowdown in the US from 2001.

EXPORTS

IMPORTS

ECONOMIC PERFORMANCE INDICATOR

From "The Financial Times World Desk Reference" © Dorling Kindersley 2004