Patterns of Development in Mexico

Introduction

This discussion will analyze the patterns of development in Mexico), focusing on the areas of economic growth, technical progress, inequality, poverty, income distribution, education, health, population, and trade issues. There are a number of positive trends that create business opportunities that can result in the growth of the Mexican market. Companies / Entities Contracting are aware that the outsourcing of security services to help cut costs and conserve resources while offering good quality.

Discussion

In 1998, the Mexican economy faced a complex and adverse international context, characterized by uncertainty and instability. Particularly, the elements from the international economic situation that affect the evolution of the Mexican economy are: the restriction of external resources to emerging economies, the sharp drop oil prices and the decrease in the price of some minerals and agriculture (Guevara, Varela & López). The impact of lower oil prices on the economy as a whole is limited. The important thing is the effort that Mexico's exports are more diversified and therefore the country is less

However, the impact of lower oil prices on public finances is important. In 1997, oil revenues accounted for 36.2% of total revenue in the public sector (Corona). Therefore, in 1998, the drop in revenue from sales outside the oil was offset by a lower public spending, when performed three settings by 29,775 billion pesos, and with the increase of non-oil revenue in 6472 billion. Government reaffirms its commitment to keep public finances healthy (Holland, et al.). Fiscal discipline has become a priority to overcome the economic emergency, achieve recovery and achieve sustainable economic growth. Therefore, there were three cuts in public spending in 1998, equivalent to 0.79% of GDP (Shadlen). Moreover, as part of the strategy to tackle the adverse external situation, the Bank of Mexico adopted during the year, a restrictive monetary policy gradually.

The economy continues to grow. In 1998, the GDP increased by 4.8% over 1997. By sector, the Industry Sector posted a growth of 6.6% over the past year, compared to 1997. All major economic activities that comprise this sector experienced growth in its production: the manufacturing industry grew by 7.4%, the Construction, 4.6%, and Mining, 3.4%, and the Generation of Electricity, Gas and Water grew 4.7% in the year above (Shadlen). An important characteristic of the performance of the industrial sector as a whole in 1998 has to do with the fact that, this year, GDP growth was almost universal among the industries that comprise it. In fact, of the 57 industrial sectors, 89% of them, i.e. 51 branches, showed increases in their GDP compared to the levels existing in 1997 (Corona).

In 1998, total exports reached 117.5 billion dollars, an increase of 6.4% over 1997. The positive trend shown by exports can be attributed to the performance of exports, non-oil, since, in 1998, oil exports decreased 36.9% compared to that observed in 1997 (Corona). The magnitude of the loss in the oil stands out when considering that oil exports recorded in 1998 were the lowest in the ...