section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  As of April 2018, Mexico has the 15th largest nominal GDP (US$1.15 trillion) and the 11th largest by purchasing power parity (US$2.45 trillion). GDP annual average growth was 2.9% in 2016 and 2% in 2017. Agriculture has comprised 4% of the economy over the last two decades, while industry contributes 33% (mostly automotive, oil, and electronics) and services (notably financial services and tourism) contribute 63%. Mexico's GDP in PPP per capita was US$18,714.05. The World Bank reported in 2009 that the country's gross national income in market exchange rates was the second highest in Latin America, after Brazil at US$1,830.392 billion, which led to the highest income per capita in the region at $15,311.
  
  Mexico is established as an upper-middle-income country. After the slowdown of 2001 the country recovered and grew 4.2, 3.0 and 4.8 percent in 2004, 2005 and 2006, even though it is considered to be well below Mexico's potential growth. The International Monetary Fund predicts growth rates of 2.3% and 2.7% for 2018 and 2019, respectively. By 2050, Mexico could potentially become the world's fifth or seventh-largest economy.
  
  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 industry grew 20% between 2010 and 2011, up from its constant growth rate of 17% between 2003 and 2009. Currently electronics represent 30% of Mexico's exports.
  
  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. In the 2010s expansion of the sector was surging. In September 2016 Kia opened a $1 billion factory in Nuevo León, with Audi also opening an assembling plant in Puebla the same year. BMW, Mercedes-Benz and Nissan currently have plants in construction. The 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. 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 become 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 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, Mexico's National Council for the Evaluation of Social Development Policy (CONEVAL), which is the organization in charge to measure the country's poverty reports that a huge percentage of Mexico's population lives in poverty. According to said council, from 2006 to 2010 (the year on which the CONEVAL published its first nationwide report of poverty) the portion of Mexicans who live in poverty rose from 18%–19% to 46% (52 million people). Despite this situation, CONEVAL reported in 2023 that 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% (from 51.9 million to 46.8 million people), according to its Multidimensional Poverty Index, though the extreme poverty rate rose by 0.1% (410 thousand people) within the same period, remaining at 7.1% (9.1 million people), and the number of people lacking access to healthcare services has significantly increased, from 16.2% to 39.1% (50.4 million people), though some specialists have expressed a degree of doubt regarding the accuracy of these rates. According to the OECD 's own poverty line (defined as the percentage of a country's population who earns 60% or less of the national median income) 20% of Mexico's population lived in a situation of poverty in 2019.
  
  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%. The OECD also notes that Mexico's budgeted expenses for poverty alleviation and social development are only about a third of the OECD average. This is also reflected by the fact that 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. Daily minimum wages are set annually. The daily minimum wage will be $248.93 Mexican pesos (US$13.24) in 2024 ($375 in the country's northern border), making it comparable to the minimum wages of countries like Uruguay, Chile and Ecuador. The minimum wage has rapidly increased throughout the last few years, as it was set at 88.15 pesos in 2018.