After the financial crisis at 2007, Mexico's economy was unstable. It suffered the steepest recession, and in 2009, tis economy shrank by 6%. And since China joined the World Trade Organization, in 2001, Mexico started undercutting its export price. Since then, 2001, Mexico's economy grew only by 1.6% a year, less than half the rate of Brazil, which flourished by exporting goods to China.
But now, according to The Economist, the story is different. "Mexico now boasts free-trade deals with 44 other countries, more than any other nation. Its financial sector and even its oil and gas fields, that augur well for a very different decade". And according to US Department of Commerce HSBC, in six years' time the United States will be more dependent on imports from Mexico than any other country (a graph below projects the US imports from selected countries in the future).
Mexico has been one of the world's biggest oil producers. And Pemex, a state-run oil and gas monopoly, is at the top of the game. In few decades, Pemex could be a oil and gas monopoly of the whole world. If it really happens, then the demand would go up and supply would go down, which results higher price for consumers.
The Economist says, one way to stop Mexico's ongoing growth is "a protracted slowdown in the U.S., the destination of four-fifths of Mexico's exports".
