THE 7 MAIN ECONOMIC ACTIVITIES OF VERACRUZ - ECONOMY - 2024

Some of the most important economic activities in Veracruz are agriculture, livestock, forestry, fishing, transportation, or exploitation of natural resources. Veracruz is one of the 31 states that, together with the Federal District, comprise the 32 states of Mexico. It is divided into 212 municipalities and its capital is Xalapa-Enríquez.

Veracruz has one of the main economies in Mexico, based on agriculture and oil. Improved literacy has strengthened the informal and formal economies of Veracruz, indicating that policies designed to increase literacy are vital for the growth of the regional economy.

Although indigenous people are relatively poor, little evidence has been found that the informal economy is a larger percentage of total economic activity in a municipality with a high proportion of indigenous people.

While the formal economy may have been expanding relative to the informal economy in 2000, by 2006 this process had been reversed with increasing informality.

While rural municipalities have smaller economies, they are no different than urban municipalities in the portion of the economy that is informal.

Programs in the past that could move economic activity from the informal sector to the formal sector have been unsuccessful suggesting public finance issues such as tax evasion will continue to affect the state with low government income.

Main economic activities of Veracruz

farming

The primary sector of the economy (agriculture, forestry and fishing) has been important since pre-Hispanic times and continues to be important both as a source of income and as a culture.

The state has abundant rainfall and extremely fertile soils, as well as a long coastline and forest containing a wide variety of trees and other plants.

There are about 1 million hectares of arable land, half of which is in private hands and 43% is ejido or communal lands.

The main agricultural products include coffee, vanilla, sugar cane, tobacco, bananas, coconuts and vegetables, but local farmers depend mainly on corn and beans. The state is the main national producer of coffee, sugar cane, corn and rice.

Veracruz is the first nation in the production of pineapple, chayote, mango, Manila mango, sugar cane, Valencia orange, papaya and lemon.

Cattle raising

It is an important activity in the region. There are more than 300,000 production units, most of which raise cattle, with Veracruz being the main meat producer for the country at 14% of the total.

In addition to cattle, dairy cattle, pigs, sheep, goats, horses, domestic birds, and bees.

The promotion of the agricultural industry was present at 21 national fairs and 6 international fairs (in Germany, the United States, Spain and others).

The entity's Nueva Generación Rural program supports the implementation of agricultural projects promoted by young people from Veracruz.

Forestry

From the tropical forests of the interior regions come dye woods, hard woods, and rubber.

About 20% of the state's territory is forested, with 220,000 temperate forests and 1,200,000.

The state produces 128,254 m3 of wood products per year. The most exploited species include pine, fir, cypress, and oak. Some tropical hardwoods are harvested as well.

Fishing

The long coast of Veracruz supports a large fishing industry, producing one-fifth of Mexico's catch. Most of the country's mojarra, trout, oysters and shrimp come from here.

Other important fish catches include tilapia, lebrancha, crab, sea bass, and red snapper. The fishing industry is the first in the country in production of wahoo, saw and horse mackerel.

Business sector

Like most Mexican states, micro, small, and medium-sized companies represent 70% of the state's operating companies, which is why the government installed a Rapid Business Opening System, through which the opening of companies Considered small, or low risk, it involves less paperwork.

Six business development centers have been inaugurated and help these types of companies.

The Training Program for Competitive Companies trains nearly a thousand people each year. Regarding financial support, the Trust related to the Company grants credits to Veracruz PyMes.

Transport

Veracruz has 3 commercial sea ports and 5 coastal sea ports, through which it transports 30% of the shipments transported by sea and 30% of national cargo in the country.

Nan Chital de Lázaro Cárdenas County was the first county in Mexico to connect with the "port administration", whose investment generates nearly 1,200 jobs.

Regarding private investment by the State, more than 80% of it was made in 2006 in the industrial industry.

Foreign investment in Veracruz comes from Spain, Colombia, Venezuela, Belgium, Germany, Switzerland, Japan, the United States, Canada and Nicaragua.

Thanks in part to the entity's presence at the Astoria International Fair, held in Spain, and the Ven y Vive Fair in Veracruz, held in Mexico City.

Natural resources exploitation

Approximately 35% of the water supply in Mexico is located in Veracruz.

Mountains contain relatively unexploited deposits of gold, silver, iron, and coal. Although Veracruz is an important source of metals such as iron and copper, much of its mining involves non-metallic minerals such as sulfur, silica, feldspar, calcium, kaolin, and marble.

Veracruz was a pioneer in the extraction and refining of petroleum products. The state has about a quarter of Mexico's oil reserves and ranks third in oil production.

Petrochemicals represent 28.1% of the state's manufacturing and rank first at the national level.

There are 22 petrochemical plants, the most important being La Cangrejera, Jáltipan de Morelos, Poza Rica, Cosoleacaque, Pajaritos and Minatitlán.

References

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