The economy of Mexico is free market and export-oriented, and in 2007 was listed as the 12th largest economy in the world, with a Gross Domestic Product (GDP) of over a trillion dollars (as measured in purchasing power parity). The World Bank recently reported that the country’s Gross National Income of US$820 billion is the second highest in Latin America (behind only Brazil), and has given Mexico the highest income per capita in the region. Such advancements have firmly established Mexico as an upper middle-income county. Mexico is the only Latin American member of the Organization for Economic Co-operation and Development (OECD).

The currency of Mexico is the peso (ISO 4217: MXN), with one peso divided into 100 centavos (cents). Since the economic crisis of 1994 (which involved steep peso devaluation), Mexico has had a floating exchange rate regime. Under this system, the central bank of Mexico employs an automatic mechanism to accumulate foreign reserves, and possesses tools for smoothing out any peso volatility. Since 1998, the exchange rate has remained relatively stable, ranging from 9.20 and 11.50 MXN per USD (10.76 MXN per 1 USD as of May, 2007). Inflation rates are currently at historic lows, with a 2006 rate of 4.1%. Unemployment rates are the lowest of any OECD country (3.2%), although underemployment is estimated at approximately 25%. Current Mexican president Felipe Calderon has stated that his top economic priorities are reductions in poverty and the creation of new jobs.

Since 1994, the Mexican government has made significant moves to improve the country’s macroeconomic fundamentals. These changes have included reduced inflation and interest rates. Over the past decade, such changes have provided Mexico with an unprecedented degree of economic stability. In 2000 and 2002, respectively, Moody's and Fitch IBCA issued investment-grade ratings for Mexico's sovereign debt, and the economy’s annual growth rate averaged 5.1% between 1995 and 2000.