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Mexico has the fifteenth largest nominal GDP and the eleventh largest by purchasing power parity. The Mexican economy is strongly linked to those of its North American partners, especially the United States. It was the first Latin American member of the Organisation for Economic Co-operation and Development (OECD), joining in 1994. It is classified as an upper-middle income country by the World Bank.
The Mexican economy is decelerating with annual GDP growth slowing to 2.3 percent in 2016, down from 2.6 percent in 2015. A challenging external environment of modest global growth and stagnant trade, tamed though gradually rising oil prices and diminished capital flows contributed to this reversal. Economic growth in 2016 was driven almost exclusively by private consumption supported by low inflation, workers’ remittances, credit expansion, higher real wages and formal sector job creation.
Mexico's economy and culture are changing. Until 2012, Mexico's economy underperformed Brazil's. Mexico is now a major manufacturing center for electronics. That includes most of the flat-screen TVs sold in the United States. It also makes medical devices and aerospace parts.
Mexico has 44 free trade agreements. That means any company that manufactures there has duty-free access to 60 percent of the world GDP. International trade (exports plus imports) equals 66 percent of the country's GDP. That's much higher than Brazil (26 percent) or even China (42 percent).
Mexico has grown from the ninth to the seventh largest auto manufacturer in the world between 2010 and 2015. It's the fourth largest auto exporter. It recently surpassed Japan as the second-largest U.S. auto parts exporter.
Images: Ian Morton (C.C BY N.C S.A 2.0). "Izamal, Yucatan, Mexico". Carlos Villamayor (CC BY N.C 2.0) "Panorámica amanecer Hilton los Cabos" (Baja California, México). Sources: World Bank. The Balance. Mexico, the New China," The New York Times, January 26, 2013. "Open for Business," The Economist , March 12, 2016. Dudley Althaus and William Boston, "Trade Pacts Give Mexico an Edge," Wall Street Journal, March 18, 2015.