Mexico's Economic Overview
Mexico stands as one of the world's largest economies, with a diverse and robust economic structure. The economy features a balanced sectoral composition, dominated by services alongside a strong manufacturing base and a vital natural resources sector.
Economic Snapshot: $2.873 Trillion GDP
$2.87T
GDP (2023)
Total economic output
60%
Services Sector
Largest contributor to GDP
30%
Manufacturing
Industrial production share
4%
Agriculture
Primary sector contribution
Mexico's economy demonstrates remarkable diversification across sectors. Services dominate with 60% of GDP, encompassing financial services, tourism, and trade. Manufacturing contributes 30%, concentrated in automotive, electronics, and food industries. Agriculture adds 4%, producing corn, coffee, and avocados. Remittances from migrants abroad, especially from the United States, play a crucial role in supporting the economy.
U.S.-Mexico Trade Partnership
Trade Volume (2024)
- Total bilateral trade: $839.6 billion
- U.S. exports to Mexico: $334 billion
- U.S. imports from Mexico: $505.5 billion
- U.S. trade deficit: $172 billion
- U.S. foreign direct investment: $16.5 billion
Strategic Importance
Mexico became the United States' top trading partner in 2023, surpassing China for the first time in two decades.
Supply chains in automotive and electronics sectors depend heavily on integration between both countries, creating deep economic interdependence.
The Oil Paradox
Oil Producer
Mexico produces its own crude oil domestically
Largest Buyer
Biggest purchaser of U.S. crude oil and petroleum products
429M Barrels
Imported from U.S. in 2024 (11% of total U.S. oil exports)
This apparent contradiction is justified by differences in crude oil types and refinery configurations in each country. Economic feasibility often makes importing from the United States and Canada more practical than relying solely on domestic production.
Mexico's Energy Strategy Under President Sheinbaum
Under President Claudia Sheinbaum's administration, Mexico pursues an ambitious strategy to revitalize the energy sector, achieve self-sufficiency, and boost state revenues while maintaining control through the national oil company PEMEX.
The strategy represents a comprehensive approach combining infrastructure development, international investment attraction, and technological advancement to transform Mexico's energy landscape.
Strengthening Refining Infrastructure
01
New Refineries
Olmeca refinery (Dos Bocas) completed in July 2025 to increase domestic refining capacity
02
Existing Facility Maintenance
Significant budgets allocated to renovate six aging refineries and improve efficiency
03
Capacity Target
Raise PEMEX's total refining capacity to over 80% by 2030
04
Product Transformation
Increase gasoline and diesel production while reducing low-value fuel oil output
05
Petrochemicals Revival
Modernize key petrochemical facilities to add value
Gulf Investment Initiative
Strategic Partnership
Mexico's strategy explicitly includes plans to attract investments from the Gulf region to help finance and implement development projects and infrastructure in the oil and gas sectors.
This initiative seeks to leverage Gulf expertise and capital to accelerate Mexico's energy transformation and modernization efforts.
Revolutionary Shift: Unconventional Oil & Gas Development
1
Past Policy
Former President López Obrador opposed hydraulic fracturing technology
2
Policy Reversal
President Sheinbaum authorized fracking despite previous commitments against it
3
Future Potential
Projects in early stages, requiring years to reach commercial viability
This represents a fundamental change in Mexican energy policy. Mexico possesses enormous potential in the Pimienta and Eagle Ford formations, which could add over 250,000 barrels per day of oil liquids and 500 million cubic feet of gas by 2030.
This path requires massive investments and partnerships with international operators experienced in unconventional resources, as PEMEX seeks to revitalize its production.
Energy Crossroads
Mexico stands at a critical energy juncture, balancing its role as a major U.S. trading partner and destination for American oil exports while simultaneously pursuing an ambitious strategy to achieve energy self-sufficiency.
Conclusion: Reshaping Regional Energy
Economic Foundation
Major economy with strong industrial and service base, strategically dependent on oil and gas for government revenues and foreign currency
Trade Integration
Key U.S. trading partner and destination for American oil exports, with deeply integrated supply chains
Ambitious Strategy
Combining enhanced refining, Gulf investments, and unconventional resource development to achieve energy self-sufficiency
Through this comprehensive approach, Mexico aims to revive the national PEMEX company and potentially redraw the regional energy map in the long term. The success of this strategy will determine Mexico's energy independence and its evolving relationship with international energy markets.