Mexico Economic Growth
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Mexico economic growth is marked by GDP purchasing power parity, which was estimated to be $1.578 trillion in fiscal year 2008. Official exchange rate of GDP of Mexico, 2008 was $1.143 trillion. There was 2 percent real growth rate in Mexico GDP of 2008. Per capita (PPP) GDP as was anticipated in 2008 was $14,400.
In year 2008, Carstens anticipates that Mexico’s GDP will expand by 4 percent. This growth can be achieved if problems in US housing and credit markets are settled. From fourth quarter of year, Mexico economy will start to look up. Housing market of US will have recovered and it is also assumed that industrial output will increase. This would lead to substantial economic growth in Mexico.
In 2009, it is expected that there will be 0.6 percent economic growth at Mexico but financial crunch and credit crisis can make Mexican economy weaker and thus it can not match assumption of growth that is expected. So, while according to assumptions, when there can be an expansion in Mexico economy by 2.3 percent in 2008, in contrary there can be slowdown in Mexico economy by 1 .6 percent in 2009.
Economic growth of Mexico is evident at various sectors of Mexico economy. Different sectors of economy of Mexico contribute differently. In fiscal year of 2008, agricultural sector had contributed about 3.7 percent, whereas it was 34.1 percent for industry. Service sector contributed 62.2 percent to Mexico gross domestic product.
Regional GDP was 25.7 percent in 2008, while GDP per head has been calculated to be 8,315 US$. Mexico has a free market economy, which is a blend of modern and old fashioned industry and agriculture, which is dominated by private sector. In recent years, there has been economic growth of Mexico development is found in natural gas distribution, electricity generation, airports, seaports, railroads and telecommunications.
For Mexico economic growth, government has taken various steps to upgrade infrastructure of country. Tax system and labor laws and decline of inequality in income are main areas of focus for improvement by government. 16 largest companies of world are located in Mexico itself. Tax, pension and judicial reforms were there in Mexico. Currency policy and monetary system also help in the Mexico economic growth and contribute to Mexico GDP.
