Mexico’s economy is driven by manufacturing, oil, and agriculture. Automotive and electronics manufacturing, with firms like Ford and Foxconn, thrive due to U.S. trade proximity. Oil production, led by Pemex, remains vital. Agriculture includes avocados and tequila exports. Emerging industries include aerospace, with growing production hubs, and renewable energy, particularly solar. Mexico’s young workforce and NAFTA benefits fuel growth, though security issues challenge progress. Investments in fintech and nearshoring, leveraging proximity to the U.S., are expanding. Mexico’s focus on diversifying exports and green technologies positions it as a key player in North American markets.
Mexico Economy Size
Mexico’s economy has a nominal GDP of around $1.3 trillion, driven by manufacturing, oil, and agriculture. Its proximity to the U.S. boosts automotive and electronics exports. Mexico’s GDP reflects its role as a manufacturing hub and trade partner in NAFTA. Investments in aerospace and renewable energy support growth, though security issues pose challenges, positioning Mexico as a growing force in North American economic integration. See Mexico GDP.
Mexico Purchasing Power Parity (PPP)
Mexico’s economy, with a PPP GDP of about $2.8 trillion, is driven by manufacturing, oil, and agriculture. Low domestic costs significantly boost purchasing power, amplifying its economic size. Automotive and electronics exports, tied to U.S. trade, enhance its PPP GDP. Investments in aerospace and renewable energy support growth, positioning Mexico as a key North American economy with strong manufacturing and trade contributions.
Mexico Growth Rate
Mexico’s economy faces a negative growth rate of -0.3% in 2025. Manufacturing, particularly automotive and electronics, struggles amid global demand slowdowns and U.S. trade uncertainties. Oil production and agriculture provide some support, but security issues and infrastructure gaps hinder progress. Investments in aerospace and nearshoring offer long-term potential, though short-term contraction reflects external pressures and domestic challenges impacting economic performance.
Mexico Inflation
The Mexico’s inflation is moderate at 3.8%, driven by food and energy price volatility. U.S. trade dependence and currency fluctuations contribute, while manufacturing growth adds pressure. Tight monetary policy and improved supply chains help control inflation, but security issues and infrastructure gaps sustain price increases. Investments in nearshoring and renewables mitigate some risks, keeping inflation manageable.
