Mexico's economy is 66.4 percent free, according to our 2008 assessment, which makes it the world's 44th freest economy. Its overall score is 0.1 percentage point higher than last year. Mexico is ranked 9th out of 29 countries in the Americas, and its overall score is higher than the regional average.
Mexico scores relatively well in business freedom, fiscal freedom, trade freedom, government size, property rights, and financial freedom. Commercial operations are becoming more streamlined, and business formation is efficient. Income and corporate tax rates are moderate, and overall tax revenue is low as a percentage of GDP. Government expenditures are fairly low.
Freedom from corruption is the only factor that is worse than the world average. Foreign investment in many sectors is deterred by special licensing requirements, although the government is working to make commercial regulations more investment-friendly. A weak judicial system produces slow resolution of cases and is subject to fairly significant corruption.
Importance: Of the six countries we are studying in AP Government, Mexico comes in second only to Great Britain with regard to economic freedom. One of the major deterrents of Mexico further developing its economy is the abundance of drug crimes which the current president, Felipe Calderon, has dedicated much of his administrative powers. With increasing economic freedom, Mexico will increase its affluence and world power.
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