WHAT ARE THE ECONOMIC COMPONENTS OF MEXICO? - CULTURE VOCABULARY - 2025

The economic components of Mexico are varied in nature, however its primary activities correspond to the exploitation of its natural resources through agriculture, fishing and mining.

Additionally, tourism, transportation, and telecommunications are other sectors that make large contributions to the Mexican gross domestic product.

The Mexican economy is the fifteenth largest in the world and the second in Latin America, only behind Brazil.

Its export model is one of the best in the world, having annual exports of more than 400 billion dollars, its main trading partner being the United States of America.

Main economic components of Mexico

Although it has many companies of Mexican origin, in Mexico there is a huge number of assemblers and industries belonging to foreign companies that have decided to outsource their manufacturing operations to Mexico.

Its workforce is in high demand globally and is on the same level as China or India.

Natural resources exploitation

Agriculture, mining, fishing, and the exploitation of forests for timber comprise the most important economic activities in Mexico.

Among the main raw materials produced by natural resources are iron, tin, lead, copper, oil, cotton, corn, tomatoes and avocados.

Manufacture

Manufacturing industries are the ones that make the greatest contribution to Mexican GDP, with 17%.

Electronics manufacturing and vehicle assembly are the main manufacturing activities.

Commerce

Retail trade is the second most relevant economic activity in Mexico, with a 14% contribution to GDP.

Within commerce, transportation and real estate stand out.

Building

During the last two decades this activity has had a growth of more than 100%, it also encourages the use of raw materials created in Mexico such as aluminum, iron, wood and cement.

Main companies in Mexico

The main companies in Mexico are based in the food, raw materials and assembly industries.

Bimbo

It is a multinational that manufactures and distributes food products such as bakery, pastry, sweets and pastries.

It is the largest bakery in the world and has a strong presence throughout the American continent, where it is a leader in many sales sectors.

Pemex

Petróleos Mexicanos is a producer and refiner of oil and natural gas. Pemex is a state-owned company and produces more than 2.5 million barrels of oil a day.

Cemex

It is a cement producer company. It is found in more than 50 countries around the world and is the third largest cement sales company worldwide and the number one ready-mix concrete distribution company.

More than 50% of its sales come from its operations in Mexico, the United States and Spain.

Automotive

The high quality of Mexican manufacturing has led many of the world's largest automotive companies to establish assembly operations in the country.

Renowned brands such as Chrysler, Ford, Honda, Nissan and Toyota have assembly plants in Mexico.

With more than 3 million units assembled per year, Mexico is the seventh country with the highest production of vehicles worldwide and second in America, only surpassed by the United States.

References

1. Economic activities in Mexico (June 14, 2017). Retrieved on November 22, 2017, from Financing.
2. Juan David Montoya (nd). Economic activities of Mexico. Retrieved on November 22, 2017, from Economic Activities.
3. Daniel Workman (January 27, 2017). Mexico's Top 10 Major Export Companies. Retrieved on November 22, 2017, from World's Top Exports.
4. Mexico Manufacturing Industries (sf). Retrieved on November 22, 2017, from NAPS.
5. Tyler Durden (January 27, 2017). These Are Mexico's Top Exports. Retrieved on November 22, 2017, from Zero Hedge.
6. Kimberly Amadeo (October 25, 2017). Mexico's Economy: Facts, Opportunites, Challenges. Retrieved on November 22, 2017, from The Balance.