Automotive industry in Puebla, Mexico

    Economic situation High degree of dependency on the United States

    Mexico’s economy is highly dependent on foreign trade, especially on the export of industrial goods such as vehicles and vehicle parts, machinery and electrical appliances. About 80 per cent of Mexican exports are destined for the United States.

    In 2023, the Mexican economy grew by 3.2 per cent. The International Monetary Fund (IMF) is predicting an annual growth rate of about two per cent for 2024 and 2025.

    The Mexican government wants to diversify the economy and expand its trading partnerships. Over the past few years, it has built a global network of agreements on free trade and more general issues, including with the EU and Japan. In July 2020, a trade agreement with the US and Canada (the United States-Mexico-Canada Agreement, USMCA) entered into force. It replaces the North American Free Trade Agreement (NAFTA) concluded in 1994.

    Nearly 11 million people who are Mexicans by birth live in the United States. About half of them are unauthorised immigrants. In 2022, Mexican migrants transferred more than 60 billion US dollars to their home country.


    As at: 04/10/2024