Mexico

The economy of Mexico is the 12th largest in the world. Since the 1994 crisis, administrations have improved the country’s macroeconomic fundamentals. Mexico was not significantly influenced by the recent 2002 South American crisis, and has maintained positive, although low, rates of growth after a brief period of stagnation in 2001. Moody’s (in March 2000) and Fitch IBCA (in January 2002) issued investment-grade ratings for Mexico’s sovereign debt. In spite of its unprecedented macroeconomic stability, which has reduced inflation and interest rates to record lows and has increased per capita income, enormous gaps remain between the urban and the rural population, the northern and southern states, and the rich and the poor. Some of the government’s challenges include the upgrade of infrastructure, the modernization of the tax system and labor laws, and the reduction of income inequality.

Demographic Data

Economic Data

Cultural & Other Data

GDP (PPP, $bn)

1559

Capital

Mexico City

Area (sq. km.)

1,972,550

GDP Real

Growth (%)

1.4

Other Large Cities

Guadalajara, Monterrey, Puebla, Ciudad Juarez

Population (million)

111

PerCap GDP ($)

14,200

Primary Language

Spanish

Population

Growth %

1.13

Prime Lending

Rate (%)

7.56

Urban

Population %

77

% Population

Under 15yrs

29.1

Inflation Rate%

6.2

Urban Growth %

1.5

Population below

poverty line (%)

13.8

Unemployment%***

4.1

Literacy

(% of population)

91

Agricultural Workers

(% of population)

15

Foreign Direct

Investment($bn)

278.9

Education spending

as % of GDP

5.5

Industrial Workers

(% of population)

26

Debt-External

($bn)

181.2

CPI Score

(1-10)*

3.6

Service Workers

(% of population)

59

Exports ($bn)

294

Corporate Income Tax %

28

Labor Force (mil)

45.5

Imports ($bn)

305.9

Ease of Doing

Business Ranking **

56

CURRENCY EXCHANGE RATE

05/14/09 $1 = 13.3 MXN

Franchising Laws Overview

Disclosure laws:

  • The disclosure document (including the completed franchise agreement) must be provided to the prospective franchisee at least thirty business days prior to the execution of the franchise agreement.

Relationship laws:

  • Franchisor and franchisee may not terminate the agreement unilaterally, unless the agreement is for an indefinite term, or unless there is just cause for termination.

Registration laws:

  • Either the executed franchise agreement or a summary of the franchise agreement must be filed with the Instituto Mexicano de la Propiedad Industrial (IMPI).
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