Economy of Tabasco

Tabasco has a fundamental vocation towards agriculture. The geographic conditions of the state's territories provide the ideal conditions for the development of primary activities, as most of the land consists of fertile soils with numerous sources of fresh water. No wonder rural population reaches 45% of the state total, while national average reports a comparatively low 24%.

According to statistics revealed by local authorities, by the end of the year 2006, 96% of the economically active population was employed, 20% of which was placed in the agricultural, cattle raising, fishing or forestry sectors.

Major crops in the Tabasco fields include cocoa, cassava, maize, sugar cane, plantain, rice, coconut, and oranges. However, this activity is facing serious challenges, due to a lack of credit policies which may in fact adapt to the needs of the sector, not to mention the poor standards regarding trade infrastructure.

With a livestock reaching some 2 million specimens, cattle raising is one of the major economic activities in the state, as 33,785 different entities take part in the activities related to products such as meat and diary by-products, which largely contribute to the state economy. In fact, as much as 67% of the state territory is destined to the particular and primary activity of farming.

Regarded as the Logistic Center of the southeast, as it represents a corridor or trading route for the goods entering the Yucatan Peninsula, Tabasco enjoys an optimal infrastructure in terms of road networks, railroad systems, and maritime ports.

Now, in terms of the industry sector, it has not really developed as planned and expected, and Tabasco is currently one of the states with the poorest indicators regarding development in this sector. This is due in part to the traditional dependency the state has had on the extraction of crude oil, an activity now suffering a rapid decline.


 

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