Mexico Economy

Mexico is a federal constitutional republic in North America, bordered by the United States on the north and by Belize and Guatemala on the south-east. The south and west is flanked by the Pacific Ocean and the Gulf of Mexico on the east. Mexico’s has an estimated population of 111 million, and its economy is the 13th largest in nominal GDP terms ($1.143 trillion -2009) and the 11th largest by Purchasing Power Parity (PPP, $1.563 trillion – 2009). Furthermore, Mexico’s economy is part of the North American Free Trade Agreement (NAFATA), a trilateral trade bloc in the region comprising of the US, Canada and Mexico.
Mexico Economy:  Profile

Mexico has benefited from the NAFTA; being a free market economy, it has increased its trade with the US and Canada threefold. Furthermore, over 90% of their trade falls under twelve free trade agreements spanning more than 40 countries worldwide. The Mexican GDP grew at an average rate of 5.1% during 1995-2002. The recent economic recession and more specifically, the downslide in the US markets impacted this growth in a negative way. The annual average growth for the GDP in 2005 dipped to 3-4.1%.

In 2009, the economic profile for Mexico took a turn for the worse. Widespread disease in the form of a flu outbreak added to the failing economy in 2009. Policy stimulus proved inadequate against the background of limited fiscal stimulus and monetary relaxation. From an all-time low rate of annual inflation of 3.3% in 2005, this rate has only recently displayed signs of reducing from 6.4% in 2008 to 5.4%. These fluctuations are largely caused by the economy of Mexico’s close association with US business and trade.

Recovery Process: Mexican Economy 2010

For the year 2010, the growth figures pertaining to the Mexican economy indicate signs of a recovery. The Mexican Finance Ministry has increased the growth figures from 3% to 3.9%. This upswing was the result of significant improvement in Mexico’s exports, automobile production, manufacturing and increased imports of consumer goods. Employment is also on the rise alongside an increase in foreign and domestic demand, despite a deep divide in economic distribution, where 32% of the top earners take in 55% of the country’s total income.

Brazil Exports, Imports & Trade

In 2010, Brazil total trade volume was US$387.4 billion. Brazil is a member of numerous economic organizations, including Unasul, WTO, Mercosul, G-20 and the Cairns Group. Brazil has hundreds of trading partners, with 60 percent of its total exports made up of manufactured and semi manufactured goods.

Mercosul, an economic and political agreement that includes Argentina, Paraguay, Uraguay and Brazil, promotes free trade and easy transit of goods, people and currency. In 2008, Mercosul signed a free trade agreement with Israel, and later signed with Egypt in 2010.

Brazil is also one of the leading players in the World Trade Organization's Doha Development Round negotiations for discussion on lowering trade barriers around to world to boost global trade. However, discussions has been stalled due to differences between EU, US, Japan and other developing countries, including Brazil.

As Brazil's economy expects to expand in the next 5 years, experts says that the appreciation of the real will impede the increasing demand of Brazil's exports, thus reducing Brazil's total exports. A strong real may also increases demand for imports of foreign goods, thus resulting to a trade deficit and widening of Brazil's current account deficit.
Brazil's Import and Export Indicators and Statistics at a Glance (2010)

Total value of exports: US$199.7 billion

Primary exports - commodities: transport equipment, iron ore, soybeans, footwear, coffee, automotiv

Primary exports partners: China (12.49 percent of total exports), US (10.5 percent), Argentina (8.4 percent), Netherlands (5.39 percent), Germany (4.05 percent)

Total value of imports: US$187.7 billion

Primary imports - commodities: machinery, electrical and transport equipment, chemical products, oil, automotive parts, electronics

Primary imports partners: US (16.12 percent of total imports), China (12.61 percent), Argentina (8.77 percent), Germany (7.65 percent), Japan (4.3 percent)

Dubai Trade, Exports and Imports

According to industry experts, Dubai’s growth is continuing steadily in 2010 and is expected to expand further in 2011. In 2009, the export destinations increased to 163, as per the annul report of the Dubai Chamber of Commerce and Industry. The export of locally processed sugar stood at approximately Dh1.4 billion in 2008. Some other major food product exports included dates, figs and mangoes, worth Dh285 million.

The non-oil exports of the emirate rose by 23% in 2009, in comparison to the 2008 levels. The goods worth AED42.6 billion were exported by Dubai in 2008, whereas it exported goods worth AED52.4 billion in 2009 (Dh186.1 billion, including re-exports). However, according to the Dubai Chamber of Commerce and Industry, total exports plummeted by 16% in 2009. The major re-exporting destinations of Dubai are:

    *      Iran (US$ 790 million)
    *      India (US$ 204 million)
    *      Saudi Arabia (US$ 194 million)

Dubai Imports: Data

Over two-thirds of the import items to the UAE are directed to Dubai. Major import commodities of Dubai are capital, consumables, cement, food products and intermediate products. The leading import sources of Dubai as of 2008 were:

    *      Japan (US$ 1.5 billion)
    *      China (US$ 1.4 billion)
    *      The United States (US$ 1.4 billion)

According to Bu Amim, in 2009, Dubai recorded a 12% increase in the import of fruit and vegetables. In 2007, Dubai exported 2.96 million tons of cement to support is booming construction industry. Dubai imported 300 tons of gold in 2008 and by Q12009 its gold trade reached $14.69 billion.

Egypt Trade, Exports and Imports

Egypt’s trade profile is characterized by huge trade deficits. The economy is highly dependent on oil exports, which is its major source of foreign income together with tourism receipts and US financial and military aid. It has to import most of its food, other commodities and equipment, since both its agricultural and industrial sectors are not well-developed.

Since the 1990s, the government has pioneered several economic reforms through foreign donor aid. However, measurable benefits of these economic reforms are yet to be seen.
Egypt Trade: Exports

Egypt’s 2010 exports trade grossed over US$29 billion, a 22% surge from the previous year’s level.

Oil export is central to the Egyptian economy. Egypt produces 630,600 barrels of oil a day, and  exports 155,200 barrels per day, approximately. However, the country has huge oil reserves, 37 billion barrels proven and potentially more in uncharted areas, which can act as fuel for the economy for coming decades.

Apart from crude oil and petroleum products, the country also exports metal products, cotton, textiles and chemicals. Before World War II, cotton made up 90% of Egypt's exports, while cotton textiles had grown to 16% of exports by 1970. By 1985, however, oil had come to dominate trade, making up around 80% of exports.

EU and the US are the biggest exporting markets for Egyptian oil and other products. Italy has the largest share of the Egyptian export pie, accounting for 9.4% of the total volume. It is followed by the US (7.1%), India (6.2%), Spain (6.1%),  Syria (5.5%), Saudia Arabia (4.6%), Japan (4.5%) and Germany (4.5%).

Egypt Trade: Imports

Egypt import volumes reached US$43.98 billion in 2009, a 24% rise from the previous year’s level.

Due to surplus imports, Egypt has had a negative balance of trade since the 1980s. Based on total import volumes, the country ranks 49th in the world.

Food, commodities, equipment and wood products are the major items of import.

The US is the largest import partner. It accounts for more than 10% of the total imports, followed by China (9.9%), Italy (7.3%), Germany (6.8%) and Saudi Arabia (4.9%).

Previously, Egypt used to be a strong trade ally of the communist bloc. Since the 1979 Camp David peace agreement with Israel, Egypt has become a staunch US ally, from whom it receives massive financial and military subsidies. It has gradually shifted trade partnerships to the western world, and enjoyed strong (but uneven) economic growth as a result. Egypt has signed several international trade agreements with partnering countries that govern the country’s international trade.

Iraq Trade, Exports and Imports

Iraq is a member of the Organization of the Petroleum Exporting Countries (OPEC), an international trade organization. Subsequent to its invasion of Kuwait, the country was barred from exporting anything but oil, from 1990 to 2003. This was done by the United Nations (UN) under the Oil-for-Food program. Iraq was allowed to use the proceeds for importing materials of civilian needs, including food, medicine, and infrastructure-repair parts. The export of oil accounted for US$7.4 billion of the total exports in 2003.

 Since the lifting of the UN sanctions in 2003, Iraq has been attempting to further trade relations with the US and the international trade community. During this period, Iraq made enormous imports including food, fuels, medicines, and manufactured goods. In 2004, the nation was given the designation of abeneficiary developing country by the UN under the Generalized System of Preferences (GSP) program. In 2007 and 2008, Iraq participated in the two Working Party meetings to promote its WTO accession. This was required to bring its trade regime at par with the multilateral international trade system. The total exports of Iraq dropped to $37.89 billion in 2009 from the previous year’s $58.81 billion. Oils exports in 2009 amounted to 1.9 million bbl/day in 2008. The total imports of Iraq in 2009 also decreased to $35.77 billion, as compared to $37.22 billion in year 2008.


Iraq Trade: Exchange Rates

Iraq Exports: Commodities

Some main export products of Iraq are:

    *      Crude oil 84%
    *      Crude materials excluding fuels 8%
    *      Food and live animals 5%

Iraq Exports: Partners

The major export partners of Iraq (as of 2008) are as follows:

     *      South Korea 7.1%
    *      India 12.2%
    *      Italy 9.8%
    *      US 38.6%
    

Iraq Imports: Commodities

Some of the main import products of Iraq are:

    *      Food
    *      Medicine
    *      Manufactures

Iraq Imports: Partners

The major import partners of Iraq (as of 2008) are as follows:


    *      China 6%
    *      Jordan 6.4%
    *      US 10.6%
    *      Turkey 19.6%
    *      Syria 26.2%

Nigeria Trade, Exports and Imports

Nigeria's trade relations revolve around the oil and natural gas sectors. After the economic reforms of 2005, the government is making efforts to diversify its export profile beyond the oil sector, such as minerals and agricultural products.
Nigeria Trade: Exports

Oil and natural gas are the most important export products for Nigerian trade. The country exports approximately 2.327 million barrels per day, according to the 2007 figures. In terms of total oil exports, Nigeria ranks 8th in the world. As of 2009, Nigeria has approximately 36.2 billion barrel oil reserves. Despite large scale liberalization efforts, this sector is under close check of the government agencies. Nigerian National Oil Corporation (NNOC) is the regulatory body for the oil and natural gas sector.



Prior to oil production, which surged after the 1970s, agricultural production was the largest export sector for Nigeria. After the country became a largely oil-intensive economy, the agriculture sector took a back seat. However, it still provides employment to almost 70% of the total working population.



According to the 2009 figures, the country’s total export volumes stand at US$45.43 billion. Major items of export are oil products, cocoa and timber. The UK and the US are the largest trade partners for Nigerian exports.

Nigeria Trade: Imports

Due to high international oil prices, Nigeria’s import trade is able to balance export revenue. According to the 2009 figures, the country's imports grossed over US$42.1 billion. Machinery, heavy equipments, consumer goods and food products are the major imports. A large portion of the imports arrive from the EU, particularly the Netherlands, the UK, France and Germany. China, the US and South Korea are also major import trade partners.

After 2005, Nigeria has fostered trade relations with emerging economies, such as India, China and South Korea. After the US, India is the second largest exporter of Nigerian oil.

South Africa Trade, Exports and Imports

 South Africa’s trade, exports and imports are heavily dependent on the nation’s natural resources and the government’s highly liberal trade incentives. South Africa recorded a trade surplus of R3.7 billion in December 2009, according to the South African Revenue Service (SARS). The surplus resulted from a decrease in imports of 13.73% and a decrease in exports of 1.08%. In December, exports amounted to R45.36 billion and imports amounted to R41.69 billion resulting in a surplus of R3.67 billion. The cumulative trade deficit for 2009 was R25.84 billion. Compared to a deficit of R71.63 in 2008, this represents a decline of R45.79 billion or 64%.
South Africa Trade: Exports

South Africa’s primary export commodities include gold, diamonds, platinum, other metals and minerals, machinery and equipment. South Africa’s exports were worth $67.93 billion in 2009, down from $86.12 billion in 2008. The following chart shows the distribution of South Africa’s export partners. All data are in percentages.

South Africa: Imports

South Africa’s primary import commodities include machinery and equipment, chemicals, petroleum products, scientific instruments, and food materials. South Africa’s imports were worth $70.24 billion in 2009, down from $90.57 billion in 2008. The following chart shows the distribution of South Africa’s import partners. All data are in percentages.

South Africa Trade: Exchange Rates