Economic Analysis of Mexico

Economic Analysis Mexico’s membership of the North American Free Trade Agreement (NAFTA) since 1994 has attracted major investment from foreign countries. The focus of the foreign investment is on manufacturing. Nearly all the world’s major companies are now present in Mexico. For example, according to the Economic Development Secretary from the Mexican state of Baja California, the state hosts 90 companies from Japan, 25 Taiwanese companies, five from Hong Kong, four from Singapore, and three from …

…Fox has instilled a regional development plan and Central America is key in diversifying Mexican export markets where there are over 34 million potential consumers. He has plans to encourage communication to facilitate trade and supports the creation of a Central American development bank. Fox plans on economic growth of 7% by 2006, lowering inflation, and balancing the Mexican budget by 2004. However, the economy is likely to slow down as an effect of the sluggish United States economy.