The regulatory action of global standards is an essential instrument for the national economy and international trade. In Mexico, standardization takes the form of required Official Mexican Standards (NOM) developed by federal government agencies, as well as predominantly voluntary Mexican Standards (NMX) supported by the Secretariat of Economy and the private sector under national standardization committees (Gobierno de México, n.d.). Mexico’s GDP per capita was last reported in 2020 at 17887.75 US dollars when adjusted for purchasing power parity (PPP) (“Mexico GDP per capita PPP,” n.d.). Mexico’s purchasing power parity in 2020 was 9.7 LCU per international dollar (“Mexico – Purchasing power parity,” n.d.) When measured for PPP, Mexico’s GDP per capita is comparable to 101 percent of the global average.
Currently, Mexico is recovering from a pandemic with significant economic and societal consequences. Informal laborers, women, and adolescents were especially hard impacted, worsening long-standing socioeconomic issues (“Mexico economic snapshot,” 2022). The practical macroeconomic policy framework of Mexico ensured macroeconomic stability. Nonetheless, medium-term development prospects have diminished, and growth has been slow during the last two decades; poverty rates and regional disparities remain substantial (“Mexico economic snapshot,” 2022). Hence, Informality, financial inequality, and corruption have all stifled productivity development.
Maintaining and developing Mexico’s solid macroeconomic policy framework is critical to stability. The annual inflation rate reached 7.28 percent in February 2022 (“Mexico inflation rate,” n.d.). The income rate (tax) is set at 35 percent (“Mexico personal income tax rate,” n.d.). There is no de facto vice president in Mexico regarding government control. If the President cannot carry out his duties, Congress appoints a Substitute or Interim President (“Mexico: Economic and political overview,” n.d.). Hence, until a nomination is made, the Secretary of the Interior exercises interim executive powers.
Andrés Manuel López Obrador has been the country’s President since December 1, 2018. The Mexican IPC index (Indice de Precios y Cotizaciones) is a fundamental stock market index that measures the performance of critical Mexican firms listed on the Mexican Stock Exchange (“IPC Mexico stock market,” n.d.). Since the beginning of 2022, IPC Mexico has risen by 2164 points or 4.06 percent (“IPC Mexico stock market,” n.d.) The Bank of Mexico is Mexico’s central monetary authority (Corporate Finance Institute, n.d.). There are almost no tariff barriers for US exports to Mexico under the United States-Mexico-Canada Agreement, briefly USMCA (“Trade barriers,” 2021). Significantly, the USMCA went into effect in 2020, facilitating the trade.
References
Corporate Finance Institute. (n.d.). Top banks in Mexico.
Gobierno de México. (n.d.). Standards.
IPC Mexico stock market. (n.d.). Trading Economics.
Mexico – Purchasing power parity conversion factor for gross domestic product. (n.d.). Knoema.
Mexico economic snapshot. (2022). OECD.
Mexico GDP per capita PPP. (n.d.). Trading Economics.
Mexico inflation rate. (n.d.). Trading Economics.
Mexico Personal Income Tax Rate. (n.d.). Trading Economics.
Trade barriers. (2021). International Trade Administration.