Mexico’s economic freedom score is 67.0, making its economy the 50th freest in the 2013 Index. Its score is 1.7 points better than last year, reflecting notable improvements in investment freedom, trade freedom, and monetary freedom. Mexico is ranked 3rd out of three countries in the North America region, but its score is well above the world average. The Mexican economy has shown a moderate degree of resilience in the face of a challenging global economic environment. Reform efforts have continued in many areas related to economy freedom. Implementation of policies intended to support open markets and encourage a vibrant private sector has enhanced investment flows and the vitality of entrepreneurship, although growth remains sluggish. The 2012 labor reform bill, which aimed to increase labor market flexibility, was weakened by amendments to protect the country’s powerful unions.
Mexico has lagged notably in promoting the rule of law and strengthening the legal framework. The judicial system remains vulnerable to political interference, and property rights are not strongly protected. Corruption further undermines long-term institutional competitiveness. Recent years’ expansionary public spending threatens fiscal sustainability.
Key Statistics: Population: 113.7 million, GDP: $1.7 trillion, 4.0% growth in 2011, 5-year compound annual growth 1.4%, $14,610 per capita. Unemployment: 5.3%. Inflation: 3.4%. FDI Inflow: $19.6 billion. Public Debt: 43.8% of GDP. (2012)
The Mexican and U.S. economies are tightly integrated, with goods, services, capital and people traveling back and forth between the two nations at unprecedented rates. In trade, Mexico is second only to Canada as the largest export market for the United States, purchasing $163 billion in U.S. goods in 2010.