Mexico has two main features in its economy with opposite characteristics. On the one hand, the country produces a trillion-dollar GDP while 44% of its population lives in poverty. Nowadays, Mexico has the third-highest level of income inequality among the 39 members of the OECD. Check out these primary sectors that make up the Mexican economy today.
Mexico’s GDP
Despite poverty, corruption, and other factors, Mexico has moved forward with its economy. Mexico is considered an upper-middle-income nation by the World Bank. The country produces a GDP of USD 1.076 trillion, making it the 15th-largest economy in the world in terms of nominal gross domestic product. Mexico is one of the largest economies in Latin America, only behind Brazil.
In 2009, Mexico took a massive hit to its GDP, which came along with the financial crisis of 2008-2009 that affected global economies. Between 2010 and 2018, Mexico started to recover with positive growth. Growth jumped from 1.35% to 5.12%, with a few bumps in the road. During this period, commodities had an annual price increase due to the demand from Brazil, Russia, India, and China. In 2019, Mexico’s growth took another hit, falling to -0.05%. Also, the World Bank states that Mexico underperformed in poverty reduction, inclusion, and development.
GDP composition
Mexico’s GDP is split between the primary sector (agriculture), the secondary sector (industry), and services. According to a World Bank report, in 2020, agriculture, forestry, and fishing accounted for 3.9% of the GDP, while industry accounted for 29.6% and services for 60%.
Agriculture has remained under 4% for the past 20 years. Still, the sector is indirectly essential for Mexico’s economy. The primary industry has strengthened ties with the United States and provided tools to alleviate poverty while creating jobs. 12% of Mexico’s workforce is employed in agriculture. More than 50% of the population in rural areas is involved in the sector. There are two types of sub-sector: subsistence farming and export-oriented farming. Although families and companies working in the export sector have improved their standard of living, it has intensified inequality among agricultural workers.
The industrial sector, including manufacturing, mining, oil, and gas, contributes between 25% and 35% of the GDP. These figures have been the same for the last 35 years. From 2000 to 2020, the industry averaged 34% of Mexico’s GDP. The sector employs around 26% of the workforce.
Mexico Visa Requirements
If you’re interested in Mexico’s economy, visit it as soon as possible and see it with your own eyes. In this case, you will need the Mexico Tourist Card for a smooth entry. To stay safe in Mexico, please read these [health recommendations]. iVisa provides a trustworthy platform to process your digital application without issues. Complete a simple online form and expect an email with your official documentation. Show it to immigration officials and enter Mexico! Remember that you can contact their customer service agents 24/7 for any doubts.