Learn about Mexico in facts and figures: updated annually, this article shares a snapshot of Mexico’s geographic, demographic, and key economic data.
We update this article in late January or early February each year, when key annual economic data about Mexico get published by institutions including the Bank of Mexico and Mexico’s national statistics institute, INEGI.
Last Updated: February 2023
Land area and time zones
Mexico’s territory covers an area of ~1,972,000 square kilometers (~769,000 square miles) and has four time zones.
Borders immediately south of the United States, in-between the USA and Central America. Mexico is classed as a member of Latin American nations, and is part of the North American Continent (not South or Central America as is sometimes quoted).
The capital of Mexico is Mexico City, with an estimated population (including catchment areas) of over 20 million people.
Language in Mexico
Spanish is the official language, and around 50 different languages are also spoken by the indigenous peoples of Mexico; the most prominent of which include: Náhuatl, Zapotec, Purépecha, Otomí and (in the Yucatán region) various Maya languages.
Religion in Mexico
~90% Roman Catholic. Mexico is a politically liberal country that welcomes people of all faiths and religions, as well as those who practice none. Mexican law makes it illegal to discriminate against others here on the grounds of religion, race, socio-economic status, gender, and sexual orientation.
Federal Republic, democratically elected President, bicameral Congress.
See Also: Mexico’s government structure
Andrés Manuel López Obrador from the MORENA coalition; Sworn-in December 1, 2018 for a non-renewable six-year term. The next presidential elections are scheduled to take place in July 2024.
Mexican Peso (100 centavos = 1 Peso). For exchange rates and other useful information see Money in Mexico here on Mexperience.
Mexico’s Gross Domestic Product (GDP)
Here are some key economic indicators from recent official data published by INEGI and the Bank of Mexico.
- Mexico’s nominal Gross Domestic Product is around US$1.5 trillion.
- GDP growth in 2022 was 3%, following a 4.7% increase in 2021, which means the economy has recovered from the 8% contraction in 2020 when many activities were closed for several months because of the coronavirus.
- Last year’s growth was supported by continued recovery in services, strong demand for Mexican exports, and record remittances which ended the year at $58.5 billion, supporting household consumption. Tourism —both foreign and domestic— also continued its double-digit recovery.
- The central bank forecasts that Mexico’s GDP will grow 1.8% in 2023.
- Remittances, tourism and exports of manufactured goods are currently Mexico’s prime sources of foreign income. Mexico exports crude oil but spends much more importing gasoline and natural gas.
Inflation in Mexico
Inflation at the end of 2022 was 7.8%, the highest for a calendar year (December to December) since 2000. It’s expected to decline in 2023 to 5.2%, according to economist estimates, but still to remain well above the Bank of Mexico’s 3% target.
Sales tax in Mexico is known as IVA Impuesto al Valor Agregado, or Value Added Tax (VAT). The rate is 16% for most of the country with a lower 8% rate in the 25 km (16 mile) deep ‘economic free zone’ corridor along the US-Mexico border.
Most goods and services, including financial service charges and commissions (and also includes interest on unsecured debts) have the IVA rate applied to them. Notable items exempt from the IVA include staple foods, and medicines.
Mexico’s minimum daily wage was raised on Jan 1, 2023 to $207.44 pesos per day, up from $172.87 pesos—a 20% rise from 2022.
The rate for 2023 along the Northern Border Zone was raised to $312.41 pesos a day from $260.34 pesos a day.
See also: Mexico’s minimum wage
Mexico’s principal economic activities include exports of manufactured goods, oil and gas, tourism, mining, chemicals, iron and steel, motor vehicles, agriculture (coffee, sugar, tomatoes, avocados, tobacco), food and beverages, consumer durables.
Major trading partners
USA, Canada, UK, China, and Japan.
Other free trade agreements
Besides USMCA, Mexico has other Free Trade Agreements (FTAs) with over 40 countries worldwide, including the European Union and Japan.
Learn more about money and currency in Mexico
Read our latest articles and download free eBooks related to money and finances
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- Latest articles about money and finances in Mexico
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