The electronics industry of Mexico has grown enormously within the last decade. Mexico has the sixth largest electronics industry in the world after China, the United States, Japan, South Korea, and Taiwan. Mexico is the second-largest exporter of electronics to the United States where it exported $71.4 billion worth of electronics in 2011. The Mexican electronics exports grew 73% between 2002 and 2012. The manufactured value-added sector, which electronics is part of, accounted for 18% of Mexico’s GDP. 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.
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 become the 9th largest holder of US debt. The remittances from Mexican citizens working in the United States are significant; after dipping during the 2008 Great Recession and again during COVID-19 pandemic in 2021 they are topping other sources of foreign income. Remittances are directed to Mexico by direct links from a U.S. government banking program.
Although multiple international organizations coincide and classify Mexico as an upper middle income country, or a middle class country. A huge percentage of Mexico’s population lives in poverty. The country’s poverty rate has been decreasing in recent years, as the organization registered, within the period between 2018 and 2022, a 5.6% decrease, from 41.9% to 36.3% within the same period. The number of people lacking access to healthcare services has significantly increased, from 16.2% to 39.1% (50.4 million people).
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, being one of few countries in which this is the case. 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%. Infant mortality in Mexico is three times higher than the average among OECD nations whereas its literacy levels are in the median range of OECD nations. Nevertheless, according to a Goldman Sachs report published in 2007, by 2050 Mexico will have the 5th largest economy in the world. 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. The minimum wage has rapidly increased throughout the last few years, as it was set at 88.15 pesos in 2018.
