Tabasco - Economy

Economy

The state accounts for 3.4% of Mexico’s national GDP. Although the recent oil boom has helped to bring the state out of complete poverty, there is still areas in which this is a serious problem. In the city areas coverage of running water, sewerage and electricity is over ninety percent; however, in the rural areas, running water is about forty percent, sewerage under seventy percent and electricity under 85%. The state has about 150,000 families or about half a million people living in poverty, mostly due to lack of employment according to Sedesol. Most of the state’s poor are concentrated in the Jonuta, Tacotalpa, Centla and Humanguillo municipalities as these lack any major industry.

The heavy rainfall in the state does not lend itself well to annual crops and frequent flooding is a problem as well. Despite this, there is significant production of corn, sorghum and beans. Most of the commercially important crops are perennials, such as cacao, coconut, oranges, bananas and sugar cane. There is also important pasture, both natural and seeded. The state has extensive areas of natural grasslands. Due to the climate, the Zebu breed of cattle does best and is mostly raised for meat. Cattle accounts for about three quarters of the meat produced in the state. Other livestock includes pigs, sheep, goats and domestic fowl. Most livestock is raised in the Villahermosa, Cárdenas and Emiliano Zapata municipalities.

Tabasco has salt water and fresh water fishing along its shoreline and in the many rivers and small lakes but they are not extensively exploited, providing less than two percent of Mexico’s total fish production. Commercial species include oysters, mojarra, shrimp, sea bass, shark, lobster and pejalagarto. Most fishing fleets are located in Frontera, with others in Sanchez Magallanes, Chilitepec and Dos Bocas. The state has natural resources such as mahogany, cedar and other tropical hardwoods.

Mining, mostly of petroleum and natural gas, provides most of the state’s GDP. Only 14.6% of the working population is in mining. About 19% work in construction, transportation and manufacturing. Most manufacturing is food processing, bottling and tobacco products. About ninety percent of industrial establishments are family owned, mostly dedicated to food processing in and around Villahermosa. The most important industry is petroleum refining, done by PEMEX in the Macuspana municipality. There are 860 wells in various municipalities extracting crude oil and natural gas. It produces 556,371 barrels of crude oil and a 1,363 million cubic feet of natural gas per day. It has deposits of gravel and sand, along with the Cementos Apasco factory.

Just over 61% of the working population is employed in services and commerce. There are 86 traditional public markets. The Tabasco Fair is the most important commercial event. It has its origins in 1880. It has been held on and off since then in various locations. Today, it is held in Villahermosa at Parque Tabasco 2000 where the various municipalities of the state demonstrate their products. The current event also features cultural and sporting events as well.