United States And Mexico Have Different Types Of Economic...

United States and Mexico have different types of economic indicators. An economic indicator a statistic used to measure future trends in a nation s economy. For instance, the social and economic statistics distributed by authorize sources, for example, U.S. government divisions are pointers. Some popular economic indicators that will be discussed in the paper are, gross domestic product (GDP), inflation, population, and standard of living. Each of these indicators is categories under leading, lagging, and coincident indicators. Leading economic indicator offers us some assistance with assessing where the economy is going. They foretell what is coming, such as moving from a top stage into a withdrawal, before it really happens. Lagging†¦show more content†¦Nominal GDP of $17.4 trillion. Although there is a notable income disparity with the United States, Mexico’s per capita GDP is relatively high by global standards, and falls within the World Bank’s upper-middl e income category (Villarreal, 2015, p.2) (Villarreal, 2015, p.1) . According to Villarreal, â€Å"Trends in Mexico’s GDP growth generally follow U.S. economic trends, as shown in Figure 2, but with higher fluctuations. Mexico’s economy is highly dependent on manufacturing exports to the United States and approximately 80% of Mexico’s exports are destined for the United States. After modest GDP growth of 2.1% in 2014, Mexico’s GDP growth is forecast to grow 2.7% to 3.2% in 2015 and around 3.5% in 2016.23 The country’s outlook will likely remain closely tied to that of the United States, despite Mexico’s efforts to diversify trade,† (2015, p.11). In the United States and Mexico, in 2014, GDP was nearly at the same growth rate. In the future, I think both countries rate will increase. Another indicator that makes Mexico and the United States so different is inflation. Inflation is also referred to consumer price index. The disinflationa ry process in Mexico has led to low inflation rates, close to those recorded by its main trading partner, the United States (Carrasco, Ferreiro, 2013, p.350). Consumer costs in the United States expanded 0.5 percent year-on-year in November of 2015, up from