Mexico City

Economy

Mexico City remains the economic engine of the country even though some industries have been encouraged to move to other areas to reduce pollution and curb growth. Yet more than half of the country's industrial output is still produced in the city. Important industrial activities include textiles, chemicals, furniture, plastics and metals, electronics assembly, and the production of pharmaceutical products. The food and beverage industry remains a major employer while tourism brings millions of dollars into the economy.

The informal economy plays an important role in the city. Each day, thousands of unlicensed vendors take to the streets, selling everything from windshield wipers and umbrellas to electrical sockets, tacos, and soft drinks. These are people who would be otherwise unemployed, but they present a different challenge to city officials. For years, the city has tried unsuccessfully to clear the vendors off streets in the downtown area. Business owners complain that street vendors are not subject to taxes, do not pay rent, and compete unfairly by selling similar and often cheaper products.