Mexico is a fully functioning Western democracy. The economy is regarded as sound and reliable, with an inflation rate in single digits and constant growth in GDP.

Government focus on structural reforms and agreements has played an important part in economic development. Overall, stability is very good, and Mexico has made progress in stabilizing its economy and political environment. Mexico is one of only two countries in Latin America that has "investment grade" ratings from the major international ratings agencies.

Economic Highlights

• Mexico is among the world's most open economies, and it is dependent on trade with the U.S., which bought 86% of its exports in 2005.

• In 2005, the corporate tax rate was reduced from 33% to 30%, and is expected to decrease to 28% in 2007. The top personal income tax rate will lso decrease to 28% in 2007. The value-added tax (VAT) rate is 15%; food products and medicines are exempt from VAT.

• Mexico’s GDP has grown in the last year at a rate of 2.8 % and the inflation rate is about 4.1%. The exchange rate by the end of 2008 is expected to be of 10.91 pesos per US dollar.

• The direct foreign investment in Mexico for 2008 is estimated in about U$S 20 Billion.

The World Bank rank Mexico as one of the two top countries in Latin America where it is easiest to conduct business