Main Sectors of Industry

Mexico's economy is diversified, including hi-tech industries, oil production, mineral exploitation, and manufacturing. According to the latest data from the World Bank, agriculture accounts for 3.9% of Mexico’s GDP and employs 12.5% of the country’s active population. Mexico is the world's seventh agricultural power and ranks among the world's largest producers of coffee, sugar, corn, oranges, avocados and limes. Cattle farming and fishing are also important activities in the food industry. Mexico is also the world's forth largest producer of beer and its largest exporter. The agricultural sector suffers from occasional droughts and other issues related to climate and, in 2021, agricultural production decreased mainly due to significant droughts in Northern Mexico.

Industry employs 25.5% of the workforce and represents 30.8% of GDP, according to the World Bank. In 2022, employment in manufacturing continued to benefit from stronger U.S. activity, which favours the Mexican manufacturing industry. Mexico is among the world's leading producers of many minerals, including silver, fluorite, zinc and mercury. Moreover, oil and gas reserves are one of the country’s most precious possessions. The aerospace sector has grown sharply, thanks to the development of a cluster in Queretaro and the presence of nearly 190 companies, including Bombardier, Goodrich, the Safran group and Honeywell, which together employ 30,000 people. Mexico is also one of the world's ten largest car producers and due to significant real estate investments, the construction sector is dynamic.

The service sector constitutes 59.2% of GDP and employs 62% of the workforce. The hi-tech, information, and software development sectors are experiencing a real momentum, driven by the quality of the workforce, clusters and low operating costs that favours the creation of call centres. Medical services and tourism have been growing steadily for the past few years, mainly due to lower service costs than in other Western countries. Although the services sector was hit the hardest during the pandemic, it showed a significant recovery in the past couple of years.

Source: World Bank - Latest available data.

Political Outline

Current Political Leaders

President: Andrés Manuel López Obrador (since 1 December 2018) - MORENA
There is no de facto vice president in Mexico. In case the President is unable to perform his duties, Congress names a Substitute or Interim President. Until the nomination, the Secretary of the Interior is the one who assumes executive powers provisionally.

Next Election Dates

Presidential: July 2024
Senate: July 2024
Chamber of Deputies: July 2024

Current Political Context

President Andrés Manuel López Obrador broke a two-party hegemony that had lasted for decades when he took office in December 2018, capitalising on social discontent. López Obrador’s government declared economic reforms as its priority, including reforms of the legislation in the energy, financial, fiscal, and telecommunications sectors; along with an overall objective of a more equitable income distribution. More recently, however, the Mexican president has been criticised for not implementing a stimulus programme large enough to jump-start economic recovery and growth following the COVID-19 pandemic. Still, the president remained broadly popular in Mexico, mainly due to his pledges to reduce inequality. Moreover, in June 2021, the country held midterm elections, where the ruling Morena party and its allies failed to achieve the required two-thirds majority in the Lower House to pass constitutional changes. Nevertheless, a simple majority allows the government to keep control of issues such as the budgetary process. Still, the election results strengthened Morena's coalition ahead of the 2024 presidential election, as the party won 11 out of the 15 governorships that were at stake. In November 2022, Mexico’s Congress rejected a controversial electoral reform backed by the president, which triggered massive protests by the Obrador's supporters. However, after the initial rejection his proposal, Obrador reverted to a package of laws which required only a simple majority to pass - instead of a two-thirds majority - leading to the approval of his reform in December 2022.

Main Political Parties

Mexico has a multi-party system. Under the transition to democratic pluralism, the centre of political power has shifted away from the executive and towards the legislative branch and local governments. The largest political parties in the country are:

- National Action Party (PAN): centre-right to right wing, liberal conservative, Christian democratic party.
- Institutional Revolutionary Party (PRI): centre to centre-left, oldest political party in the country, constitutionalist, technocratic, social conservative, big tent party.
- National Regeneration Movement (MORENA): centre-left to left wing, anti-neoliberalism, left-wing nationalism, populism.
- Ecologist Green Party of Mexico (PVE): centre-right, environmentalist, conservative.
- Labour Party (PT): left-wing, social democratic, labourist, left-wing nationalist.
- Citizens' Movement (MC): centre-left, social democratic, progressist.
- Party of the Democratic Revolution (PRD): centre-left to left wing, social democratic party.

Executive Power

As established by the Constitution, the Executive power is headed by the President of the United Mexican States. The President is both Head of State and of Government, as well as the Supreme Commander of the Armed Forces. He or she is elected by popular vote for a six year term and cannot be reelected. The President appoints the Cabinet.

Legislative Power

The Mexican legislative power is in the hands of the Congress of the Union, which is divided in two chambers: the Chamber of Deputies and the Senate of the Republic. The Chamber of Deputies has 500 members, 300 of which are elected through plurality voting and 200 through proportional representation, with a three-year mandate. The Senate of the Republic is composed by 128 members, 96 of which are elected through plurality voting and 32 through proportional representation, all with a six-year mandate.