Seminar paper from the year 2017 in the subject Business economics - Economic Policy, grade: 1,3, Schmalkalden University of Applied Sciences, language: English, abstract: Mexico, the second largest economy in Latin America, finds itself confronted with several internal and external issues. In the prior year, the country experienced a decline of the economic growth. Major reasons are on the one hand, the uncertain future after the presidential election of Donald Trump, as well as the decreasing industrial production of the main trade partner, the USA. In consequence, the oil price fell, and the Mexican currency lost 20% of their value. On the other hand, the domestic market is strongly influenced by misallocation of educational funds, failed reforms, which increased the income inequality and organized crime. This essay will reflect briefly on these topics, to give a short overview of the country`s economic background andthe current situation. Furthermore, certain information about society, history and the political system will be provided to allow the reader a full insight into these connected topics.