Economy

Main articles: Economy of Mexico and Economic history of Mexico Santa Fe, CBD of Mexico City The GDP per capita of Mexican states, USD, 2007. A shanty town in the State of Mexico. 51% of Mexicans live in moderate to extreme poverty, according to national statistics.

Mexico has the 14th largest nominal GDP and the 11th largest by purchasing power parity. GDP annual average growth for the period of 1995–2002 was 5.1%. Foreign debt decreased to less than 20% of GDP. 17% of the population lives below Mexico's own poverty line, ranking behind Kazakhstan, Bulgaria and Thailand. The overall poverty rate however is 44.2%, while a full 70% lack one of the 8 economic indicators used to define poverty by the Mexican government.

From the late 1990s onwards, the majority of the population has been part of the growing middle class. But from 2004 to 2008 the portion of the population who received less than half of the median income has risen from 17% to 21% and the absolute levels of poverty have risen considerably from 2006 to 2010, with a rise in persons living in extreme or moderate poverty rising from 35 to 46% (52 million persons). This is also reflected by the fact that infant mortality in Mexico is three times higher than the average among OECD nations, and the literacy levels are in the median range of OECD nations. According to Goldman Sachs, by 2050 Mexico will have the 5th largest economy in the world.

Among the OECD countries, Mexico has the second highest degree of economic disparity between the extremely poor and extremely rich, after Chile – although it has been falling over the last decade. The bottom ten percent in the income hierarchy disposes of 1.36% of the country's resources, whereas the upper ten percent dispose of almost 36%. OECD also notes that Mexico's budgeted expenses for poverty alleviation and social development is only about a third of the OECD average – both in absolute and relative numbers.

According to a 2008 UN report the average income in a typical urbanized area of Mexico was $26,654, while the average income in rural areas just miles away was only $8,403. Daily minimum wages are set annually by law and determined by zone; $57.46 Mexican pesos ($5.75 USD) in Zone A (Baja California, Federal District, State of Mexico, and large cities), $55.84 Mexican pesos ($5.59 USD) in Zone B (Sonora, Nuevo León, Tamaulipas, Veracruz, and Jalisco), and $54.47 Mexican pesos ($5.45 USD) in Zone C (all other states)

In 2006, trade with the United States and Canada accounted for almost 50% of Mexico's exports and 45% of its imports. During the first three quarters of 2010, the United States had a $46.0 billion trade deficit with Mexico. In August 2010 Mexico surpassed France to became the 9th largest holder of US debt. The commercial and financial dependence on the US is a cause for concern.

The remittances from Mexican citizens working in the United States account for 0.2% of Mexico's GDP which was equal to US$20 billion per year in 2004 and is the tenth largest source of foreign income after oil, industrial exports, manufactured goods, electronics, heavy industry, automobiles, construction, food, banking and financial services. According to Mexico's central bank, remittances in 2008 amounted to $25bn.

Mexico produces the most automobiles of any North American nation. The industry produces technologically complex components and engages in some research and development activities. The "Big Three" (General Motors, Ford and Chrysler) have been operating in Mexico since the 1930s, while Volkswagen and Nissan built their plants in the 1960s. In Puebla alone, 70 industrial part-makers cluster around Volkswagen. The relatively small domestic car industry is represented by DINA S.A., which has built buses and trucks since 1962, and the new Mastretta company that builds the high-performance Mastretta MXT sports car.

Major players in the broadcasting industry are Televisa, the largest Spanish media company in the Spanish-speaking world, and TV Azteca.

Tourism Main article: Tourism in Mexico The Pyramids of Teotihuacan. El Tajín Palenque

Mexico has the 23rd highest income from tourism in the world, and the highest in Latin America. The vast majority of tourists come to Mexico from the United States and Canada followed by Europe and Asia. A smaller number also come from other Latin American countries. In the 2011 Travel and Tourism Competitiveness Index report, Mexico was ranked 43rd in the world, which was 4th in the Americas .

Energy See also: Electricity sector in Mexico

Energy production in Mexico is managed by state-owned companies: the Federal Commission of Electricity and Pemex.

Pemex, the public company in charge of exploration, extraction, transportation and marketing of crude oil and natural gas, as well as the refining and distribution of petroleum products and petrochemicals, is one of the largest companies in the world by revenue, making US $86 billion in sales a year. Mexico is the sixth-largest oil producer in the world, with 3.7 million barrels per day. In 1980 oil exports accounted for 61.6% of total exports; by 2000 it was only 7.3%.

The largest hydro plant in Mexico is the 2,400 MW Manuel Moreno Torres Dam in Chicoasén, Chiapas, in the Grijalva River. This is the world's fourth most productive hydroelectric plant.

Transportation Main article: Transportation in Mexico

The paved-roadway network extended for 116,802 km (72,577 mi) in 2005; 10,474 km (6,508 mi) were multi-lane freeways or expressways, most of which were tollways. Nonetheless, it still cannot meet national needs adequately. Most of the domestic passenger transport needs are served by an extensive bus network.

Mexico was one of the first Latin American countries to promote railway development, and the network covers 30,952 km (19,233 mi). The Secretary of Communications and Transport of Mexico proposed a high-speed rail link that will transport its passengers from Mexico City to Guadalajara, Jalisco. The train, which will travel at 300 kilometers per hour, will allow passengers to travel from Mexico City to Guadalajara in just 2 hours. The whole project was projected to cost 240 billion pesos, or about 25 billion US$ and is being paid for jointly by the Mexican government and the local private sector including the wealthiest man in the world, Mexico's billionaire business tycoon Carlos Slim. The government of the state of Yucatán is also funding the construction of a high speed line connecting the cities of Cozumel to Mérida and Chichen Itza and Cancún.

In 1999, Mexico had 233 airports with paved runways; of these, 35 carry 97% of the passenger traffic. The Mexico City International Airport remains the largest in Latin America and the 44th largest in the world transporting 21 million passengers a year.

Communications Main article: Telecommunications in Mexico A Satmex communications satellite being deployed from its launch vehicle

The telecommunications industry is mostly dominated by Telmex (Teléfonos de México), privatized in 1990. By 2006, Telmex had expanded its operations to Colombia, Peru, Chile, Argentina, Brazil and Uruguay and the United States. Other players in the domestic industry are Axtel and Maxcom. Because of Mexican orography, providing a landline telephone service at remote mountainous areas is expensive, and the penetration of line-phones per capita is low compared to other Latin American countries, at 40 percent; however, 82% of Mexicans over the age of 14 own a mobile phone. Mobile telephony has the advantage of reaching all areas at a lower cost, and the total number of mobile lines is almost two times that of landlines, with an estimation of 63 million lines. The telecommunication industry is regulated by the government through Cofetel (Comisión Federal de Telecomunicaciones).

The Mexican satellite system is domestic and operates 120 earth stations. There is also extensive microwave radio relay network and considerable use of fiber-optic and coaxial cable. Mexican satellites are operated by Satélites Mexicanos (Satmex), a private company, leader in Latin America and servicing both North and South America. It offers broadcast, telephone and telecommunication services to 37 countries in the Americas, from Canada to Argentina. Through business partnerships Satmex provides high-speed connectivity to ISPs and Digital Broadcast Services. Satmex maintains its own satellite fleet with most of the fleet being designed and built in Mexico.

The use of radio, television, and Internet in Mexico is prevalent. There are approximately 1,410 radio broadcast stations and 236 television stations (excluding repeaters). Major players in the broadcasting industry are Televisa—the largest media company in the Spanish-speaking world—and TV Azteca.

Science and technology Main article: History of science and technology in Mexico Andrés Manuel del Río discovered the element vanadium.

The National Autonomous University of Mexico was officially established in 1910, and the university become one of the most important institutes of higher learning in Mexico. UNAM provides world class education in science, medicine, and engineering. Many scientific institutes and new institutes of higher learning, such as National Polytechnic Institute (founded in 1936), were established during the first half of the 20th century. Most of the new research institutes were created within UNAM. Twelve institutes were integrated into UNAM from 1929 to 1973. In 1959, the Mexican Academy of Sciences was created to coordinate scientific efforts between academics.

In 1995 the Mexican chemist Mario J. Molina shared the Nobel Prize in Chemistry with Paul J. Crutzen and F. Sherwood Rowland for their work in atmospheric chemistry, particularly concerning the formation and decomposition of ozone. Molina, an alumnus of UNAM, became the first Mexican citizen to win the Nobel Prize in science.

In recent years, the largest scientific project being developed in Mexico was the construction of the Large Millimeter Telescope (Gran Telescopio Milimétrico, GMT), the world's largest and most sensitive single-aperture telescope in its frequency range. It was designed to observe regions of space obscured by stellar dust.

The electronics industry of Mexico has grown enormously within the last decade. In 2007 Mexico surpassed South Korea as the second largest manufacturer of televisions, and in 2008 Mexico surpassed China, South Korea and Taiwan to become the largest producer of smartphones in the world. There are almost half a million (451,000) students enrolled in electronics engineering programs.