According to the IMF, Mexico’s economy is ranked 14th in the world (only Brazil has a larger GDP among Latin American countries). Mexico has the second-largest economy in Latin America and is a major oil producer and exporter. Mexico has a free market economy in the trillion-dollar class. It is currently one of only two Latin American members of the OECD (the other is Chile), which is evidence of the growing transparency and improved governance across the Mexican economy. Mexico can attribute its transformation from a highly protected economy to its more open, regionalized and market-based economy of today to widespread trade liberalization over the past several decades.
This has encouraged foreign firms to set up plants to take advantage of relatively low labour costs and proximity to the US market. Economic activity is increasingly dominated by the private sector, but is characterized by a mixture of modern, export-oriented industry and agriculture. Recently Mexico has become the world’s seventh-largest producer of crude oil, and the second-largest supplier of oil to the US. Oil and gas revenues provided more than one-third of all Mexican Government revenues and are the country’s largest source of foreign currency.