Ministry of Tourism, State of Colima. Located on the central Pacific coast, the State of Colima is geographically diverse with a compact mainland that includes the Sierra Madre Occidental Mountain Range, the active Colima Volcano (3825 m, 12,549 feet) and dormant Nevado de Colima volcano in the north, coastal lagoons, the beautiful beaches of Manzanillo, and Revillagigedo Islands. Although it is the fourth smallest state in Mexico (5,625 km2/ 3495 sq. miles) and has the smallest population of any state (735,724 -- 0.6% of total), it boasts one of the country’s highest standards of living and lowest unemployment rates. Nearly 36,000 people are employed in accommodation and food services. As of 2015, the state’s GDP was almost USD $5.8 billion, a 17 percent increase since 2010, with active tourism, commerce, housing, transportation, and construction sectors. The country received USD82.2 million in Foreign Direct Investment in 2016.