MexicoChapters
With a population of nearly 130 million people, a rich cultural history, great diversity, and a favorable geography with abundant natural resources, Mexico ranks among the fifteen largest economies in the world and is the second largest in Latin America. The country has strong macroeconomic institutions, an open trade policy, and a diversified manufacturing base integrated into global value chains.
Over the past three decades, Mexico has underperformed in terms of growth, inclusion, and poverty reduction compared to similar countries. Between 1980 and 2022, the economy grew by just over 2% annually on average, limiting progress in closing the gap with high-income economies. In 2023, the economy grew by 3.2%, while in the first half of 2024, growth slowed to 1.8%, reflecting a moderation after the post-pandemic rebound. Despite this, the official multidimensional poverty rate fell from 43.9% in 2020 to 36.3% in 2022, lifting 8.8 million people out of poverty, though challenges remain in access to health and education services.
Key indicators
- Area
- 1,964,375 km2
- Population
- 130,739,927 (2024)
- Government type
- federal presidential republic
- Languages
- Spanish only 93.8%, Spanish and indigenous languages 5.4%, indigenous only 0.6%, unspecified 0.2%
- GDP
- $1.789 trillion (2023)
- Growth rate
- 3.2% (2023)
- HDI
- 77
- Capital
- Mexico City
Macroeconomic indicators
After growing by 3.1% in 2023, GDP growth is projected to decelerate to 2.5% this year and to 2.0% in 2025. Slowing activity in the United States, Mexico’s main trading partner, will weigh on export dynamism, but domestic demand will sustain growth and inflation is expected to decline further. Headline inflation has gradually come down from its peak of 8.7% in August 2022 to 5.5% in 2023 and is expected to decline further to 4.1% this year and 3.2% in 2025. Core inflation is also falling, but it remains more persistent, especially in services.
Mexico's fiscal policy has a strong track record of attaining fiscal targets and keeping public debt low. However, at 16.7% of GDP, Mexico has the lowest tax-to-GDP ratio in the OECD. There is opportunity to boost tax revenues while remaining internationally competitive, supporting continued fiscal prudence while increasing public expenditure on productivity enhancing areas like education, infrastructure, the digital and green transitions and the fight against corruption and crime. Upgrading the fiscal framework would also help build increased resilience to future shocks, including by creating the fiscal space to provide support during downturns.
Source: OECD
IMF Statistics:
| Subject descriptor | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
|
Gross domestic product, constant prices Percent change (Units) |
6.048 |
3.689 |
3.200 |
1.451 |
1.348 |
|
Gross domestic product, current prices U.S. dollars (Billions) |
1,313.070 |
1,463.324 |
1,788.821 |
1,848.125 |
1,817.818 |
|
Gross domestic product per capita, current prices U.S. dollars (Units) |
10,180.182 |
11,259.750 |
13,641.033 |
13,971.898 |
13,630.150 |
|
Inflation, average consumer prices Percent change (Units) |
5.693 |
7.898 |
5.525 |
4.676 |
3.793 |
|
Volume of imports of goods and services Percent change (Units) |
15.050 |
8.305 |
4.955 |
1.094 |
2.392 |
|
Volume of exports of goods and services Percent change (Units) |
7.217 |
8.682 |
-7.305 |
-0.549 |
3.269 |
|
Unemployment rate Percent of total labor force (Units) |
4.140 |
3.278 |
2.796 |
2.956 |
3.291 |
|
Current account balance U.S. dollars (Billions) |
-4.494 |
-17.599 |
-5.477 |
-13.704 |
-15.497 |
|
Current account balance Percent of GDP (Units) |
-0.342 |
-1.203 |
-0.306 |
-0.741 |
-0.853 |
Estimates
Source: IMF Statistics
Relationships with Luxembourg
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 07.02.2001 (Memorial 2001, A No.160, p.3360)
- Effective as of 01.01.2002 (Memorial 2001, A No.160, p.3360)
- Amendment of the Convention from 07.10.2009 (Memorial 2010, A No.51, p.830)
- Effective as of 01.01.2012 (Memorial 2010, A No.51, p.830)
Air Services agreement
- Agreement from 19.3.1996 (Memorial 1999, A, p. 1538)
- Effective as of 06.24.1999 (Memorial 1999, A, p. 2018)
Further information
Foreign Trade
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact points in Mexico
Embassy of the Grand Duchy of Luxembourg in Mexico
Ambassador with residence in Washington: Ms Nicole BINTNER-BAKSHIAN
2200, Massachusetts Avenue N. W.
Washington D.C. 20008
United States of America
Tel.: (+1) 202 265-4171/72
Fax: (+1) 202 328-8270
E-Mail: washington.amb@mae.etat.lu
Honorary consuls
Honorary Consul with jurisdiction over the United Mexican States, with the exception of the states of Yucatan, Quintana Roo, and Campeche:
Mr Thomas BARSCHKIS CORNILS
88 Privada de Madedero
Lomas Altas, Deleg. Miguel Hidalgo
11950 Mexico City
Mexico
Tel.: (+52) 55 57 00 417
E-Mail: mexicocity@consul-hon.lu
Mr Pedro Ignacio PONCE MANZANILLA
Calle 25-A No.500-BX 58-A Colonia Itzimná
97100 Merida, Yucatan
Tel.: (+52) 99 9927 3443
Source: Ministry of Foreign Affairs of Luxembourg
Country risk as defined by Office du Ducroire for Mexico
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Links : OECD country risk ranking / country risk by Euler Hermes