Colima - Economy

Economy

The state has a high level of socioeconomic development, with one of the highest standards of living in Mexico and lowest unemployment. In the state, 96% have running water, 82% have sewerage and 98% have electricity. The 2009 GDP of the state was 43,370,725,000 pesos; however, due to its small size and population, this is only .5% of Mexico’s total GDP. Most population and employment growth has been in the main urban areas of the state such as Colima, Villa de Alvarez, Manzanillo and Tecomán. According to INEGI (2010), 24.1% are employed in services. 20.4% in commerce, restaurants and hotels, 15.9% in transportation, storage and communications, 11.1% in finance, insurance and real estate, 9.5% in electricity, gas and water services, 5.7% in manufacturing, 5.1% in construction, 4.9% in agriculture and livestock and 3.8% in mining.

Agriculture, forestry and fishing employ 1.2% of the state’s population and contribute 8.45% to its GDP. Colima produces about half of Mexico’s lime crop, and is second in the production of coconut meat and tuna . The principal markets for Colima’s agricultural products, especially produce is Guadalajara, Mexico City, Puebla and Monterrey . During the dry season, there is migration from the rural areas into the urban ones as most agricultural work takes place during the rainy season. Most farm work consists of the harvesting of fruit. The agricultural production supports an agro-industry which attracts workers from neighboring Jalisco and Michoacán . Most of Colima’s agriculture is based on perennial plants such as fruit trees, producing limes, coconuts, mangos and bananas accounting for ninety percent of the volume of agricultural production and 79% of its value. Colima is the primary producer of limes in Mexico. Other important crops include corn, rice, melons, sorghum, chili peppers, coffee, tomatoes and tomatillos.

By volume the most important livestock is that of cattle, followed by domestic fowl, then honey and beeswax. Most livestock production is in the north of the state due to climate, and also includes pigs, goats and sheep. Commercially productive forest stands at about 108,225 hectares with about sixty percent of the trees able to be sold. These forests are mostly rainforest with some areas of holm oak. Forestry has been decreasing in the state due to conservation measures.

Fishing is concentrated on the coastline in ocean waters of about 641km2 as well as in 8350 hectares of lagoons and 2032 inland bodies of waters. There is also about 3000 hectares dedicated to fish farming. Fish production has increased considerably since the 1980s, most of which is due to more intensive ocean activities but fish production from rivers and lakes has also grown at about twelve percent as well. Principle catches include tuna and squid in which Colima ranks nationally at third and fourth place respectively. Other commercial species that exist include huachinangos, red porgy, combers, wahoo, mojarra and more. Fish farming is mostly dedicated raising of shrimp along lakes and lagoons such as Cuyutlán, Chupadero and Potrero Grande, with an annual production of about 5,000 tons. There is also some raising of oysters as well. The fishing industry in the state supports a canning industry mostly for tuna, shrimp and octopus along with the freezing of fish filets.

Mining, construction and utilities employ 18.5% of the population and generate 27.53% of the GDP. Half of this is from the production of electricity, gas and water services. Mining is next in importance with the production of iron, mostly from the Peña Colorada, the largest deposit in the country. Manufacturing contributes 4.7% of the state’s GDP with 2,007 units of production. Most facilities produce beverages, metal structures, canned foods, cereals, furniture, printed materials, building supplies and dairy products.

Handcrafts in the state are mostly produced for local needs rather than the tourist market. One distinguished craft is the making of palm frond hats, including a local style called the colimote. Ixtlahuacán is noted for its production of hammocks. Other items include huarache sandals, boots, bird cages, cold cuts and costumes and masks for traditional dance. These costumes include "Indian" dresses decorated with cross stitch. The state is also known for the production of handcrafted furniture, especially those based on the designs of Alejandro Rangel Hidalgo, from Comala. Villa de Álvarez produces decorative objects in fine wood. Suchitlán in the municipality of Comala is distinguished by its production of masks and other accessories for festivals and ceremonies. Villages on the sides of the Cerro Grande are the principal producers of baskets made from reeds and palm fronds. Santiago in the municipality of Manzanillo is noted for crafts made of seashell and snail shells. The main craft in the city of Colima is the reproduction of archeological pieces, especially ceramics of the old red-burnished (rojo-bruñido) style.

About two thirds of the state’s GDP is from commerce and services which include transportation and storage, mostly linked with the Manzanillo port. Economic growth associated with the port continues to grow by double digits. Most commercial activity in general is concentrated in the cities of Colima, Tecomán and Manzanillo, which have the most developed communications, transportation and other infrastructure. The main distribution center is the city of Colima handing both basic commodities and industrial and other commercial merchandise for the rest of the state. Just under 95% of Colima’s commercial enterprises are retail outlets with 5.6% involved in wholesale. Only three percent of these enterprises are modern facilities with twenty one traditional markets, forty five major tianguis and numerous corner stores still dominating the state. Commercial sales increase by about five percent per year.

Much of the state’s tourism is centered on its beaches which include those of Manzanillo as well as those found in the municipalities of Armería and Tecomán. Manzanillo is the most popular in the state and a major tourism destination for Mexico’s Pacific coast. For this reason it has developed infrastructure with hotels, restaurants, golf courses, and other attractions. For Holy Week 2011, one of Mexico’s busiest vacation times, the state gained 175 million pesos and had a hotel occupany of 94%, 7% higher than the previous year. 70,249 visited during that period. Most of the visitors were at the state’s beaches with the busiest being Cuyutlán, El Real and Miramar.