From the 16th century, Mexico was a Spanish colony. It became independent in 1821. At that time it was much larger than it is today and comprised territories which were subsequently ceded to the United States following the Mexican-American War (1846-48). Mexico is a presidential Federal Republic of 31 states and a Federal District (the capital, Mexico City). Since 2006 the country, and especially the northern states, has been subjected to violent conflict between drug cartels and state forces. The death toll is estimated at over 200 000.
According to the Constitution of 5 February 1917, which has been revised several times, the President of the Republic is elected by direct suffrage for six years and may not be re-elected. The President is also head of the government and exercises executive power. Legislative power lies in the hands of National Congress (Congreso de la Unión), comprising the Chamber of Deputies (500 members elected for three years) and the Senate (128 members elected for six years term, two-thirds of whom are renewed every three years). Each state and the Federal District has its own elected Governor and Assembly.

Defence.
Military service lasts for 12 months. A National Guard with police functions was established in 2019.

Justice.
The legal system is based on European Continental Civil Law, with influences from the American Constitution. The legal system comprises jurisdiction at federal level and at state level. At the federal level, the highest court is the Supreme Court.

Population by age and gender (% - 2020)
	75+ 60-74 45-59 30-44 15-29 0-14
MALE	AGE	FEMALE

The 2001 Ley indigena recognised the culture and fundamental rights of indigenous peoples and granted a large amount of administrative autonomy to the regions in which they live. Migratory flows towards the USA, where there are nearly 40 million Mexican residents, are very significant.

Economic situation.
In 2021, the recovery after the recession due to the COVID-19 pandemic was favoured by the economic development in the US. A low rate of growth is a structural problem for the country, which went into recession in 2019. The new executive decided to overturn the previous laissez-faire policies: spending for the state machinery was reduced and social spending was increased (pensions, employment incentives, etc). The minimum wage was raised on 1 January 2019. These economic policies, intended to stave off recession, have greatly exacerbated public debt. Officially, unemployment is low, but illegal activities (involving about one quarter of the working population) are very common, especially drug-dealing. The violence that the latter involves, along with rampant corruption, constitutes a factor of instability that discourages the development of new businesses.

Primary sector
Agriculture.
Arable land is mainly used for cultivating cereal crops, especially maize (Sinaloa and Jalisco States), which (along with dried beans) constitutes the staple food of the local diet. The production of sorghum (Tamaulipas and Guanajuato), wheat (Sonora) and barley (on the central plateau) is important, whereas rice is common on the humid coastal lowlands (Nayarit and Campeche). Among plants grown on an industrial scale, sugar cane (States of Veracruz and Jalisco) and textiles are prevalent: typical of Mexico are agaves, from which are obtained istle fibres and henequén (a traditional alcoholic drink). Cotton is grown in the states of Chihuahua and Baja California. Important export crops are tomatoes, maize, chillies and peppers, cucurbits, avocados and coffee, which is commonly grown in the humid lands of the tierras templadas (the “temperate lands” of Chiapas, Veracruz, Oaxaca and Guerrero), whereas cocoa is common in the tierras calientes (the “hot lands” of Chiapas and Tabasco). Sugar cane is grown on the slopes of the Sierras and in the lowlands. Fruit from the large banana plantations in the states of Colima, Nayarit, Veracruz, Guerrero and Tabasco is bound for export.
Forests.
The forests of the lowlands are important for timber (mahogany, ebony, cedar, sandalwood and rosewood). They also yield substances used for tanning and dyeing. Mexico is an important producer of chicle gum, a variety of natural rubber.
Livestock and fishing.
The dairy and beef cattle are reared on large estates in the north of the country are particularly important, but pigs are also farmed on a large scale. Fishing (sardines, tuna fish, shellfish and sole) is based at Guaymas, Mazatlán and Topolobampo, in the Gulf of California, at Manzanillo, on the Pacific coast, at Tampico, Veracruz and Campeche, in the Gulf of Mexico, and at Puerto Morelos and Progreso, on the Caribbean Sea. Aquaculture produces mainly shrimp, tilapia and oysters.

Secondary sector
Minerals.
Around three quarters of oil production comes from off-shore deposits in the Bay of Campeche, particularly in the north-eastern sector; the most productive pits on the mainland are in the state of Tabasco. Substantial deposits of shale oil can be found in the state of Tamaulipas. The oil sector is controlled by a monopolist public company (Pemex); in 2014 legislation was revised in order to allow the flow of private capital. Natural gas is produced at many of the oil wells. There are modest coal reserves. The subsoil possesses vast metalliferous mineral resources. Silver extraction is mainly concentrated in the states of Zacatecas, Durango, Sonora, Chihuahua and México. Lead and zinc mines in Charcas (San Luis Potosí), Naica and Santa Bárbara (Chihuahua), La Encantada (Coahuila), Fresnillo and Peñasquito (Zacatecas). The gold mines in El Sauzal and Ocampo (Chihuahua), La Herradura and Mulatos (Sonora), San Dimas and La Cienega (Durango), Pachuca (Hidalgo) and Peñasquito (Zacatecas) all play an important role. There are copper ore deposits in Cananea and La Caridad (Sonora), Boleo-Santa Rosalía (Baja California), Mazapil, Nacozari, La Colorada (Coahuila) and iron ore deposits in Cerro de Mercado (Durango) and Peña Colorada-El Mamey (Colima). There are also significant lithium reserves.
Energy and industry.
More than three-quarters of the electricity produced is of thermal origin (mainly from coal-fired power plants). There are two nuclear reactors operating at Laguna Verde (in Veracruz) which produce about 4% of the country’s electricity requirement. Oil refineries operate at Cadereyta Jiménez, Ciudad Madero, Tula, Minatitlán, Salamanca and Salina Cruz. A regasification plant is active in Ensenada. The metal-working sector is based in Mexico City and in the triangle of Monterrey, Saltillo and Monclova. The chemical industry is quite highly developed. The car-making industry is based in Aguascalientes, Mexico City, Cuernavaca, Puebla (components), Saltillo, Monterrey, Lerma and Guadalajara. Other important segments of the engineering sector are textile machinery and railway rolling stock. The textile industry is based at Torreón, Monterrey and Durango. Other important segments include glass, paper, wood pulp and cellulose, ceramics, leather goods and footwear, cement, beer and tobacco. Close to the US border (in the towns of Tijuana, Ensenada, Nogales, Ciudad Juárez, Ciudad Acuña, Piedras Negras, Nuevo Laredo, Reynosa and Matamoros) there are thousands of maquiladoras, factories run with US or mixed US-Mexican capital, operating in sectors such as textiles, electrical goods, electronics and vehicle assembly based on imported components.

Tertiary sector
Foreign trade.
A member of the NAFTA since 1 January 1994, the country revised the treaty with the USA and Canada by signing a new agreement (USMCA) in 2020. Mexico has also established free-trade agreements with the EU, Japan and other countries.

Main exports (M US$ - 2017)
vehicles and parts thereof 60 050, electrical and electronic equipment 48 829, cars 41 689, machinery 34 252, computers and accessories 23 297, crude oil 19 930, telecommunications equipment 19 560, technical and electro-medical appliances 17 475, fruit and vegetables 13 298

Finance and banking.
The Banco de México acts as the central bank. There is an active stock exchange in Mexico City.

Tourism. Tourism is a key economic sector and an important source of foreign currency. Its many attractions include seaside resorts (such as those at Cancún, Acapulco and Zihuatanejo), pre-Colombian archaeological sites and Spanish colonial sites.

Media and telecommunication.
Televisa is the world’s largest Spanish-speaking media group.

Education, culture & research.
Primary education is free and compulsory (in state schools) and lasts for six years. Secondary education, which is not compulsory, lasts for another six years (between the ages of 12 and 18).

Social security & health.
The social security system provides retirement pensions, healthcare and various kinds of protection for workers. A solidarity programme is in place to finance education, agriculture, and food and water distribution.