I think mexico do lots of wall rugs
Persia. (Iran, Iraq, Turkey, Syria) However, these hand made rugs are made with tiny knots, way to small for an adult hand. Thus these rugs are made by children. Often times, generations of children make these rugs, and since while making the rugs they get no education, their lot never improves.
Persia is the most famous country for rugs. But, the orient is the most favorable for wall habging. Try china or Taiwan for nice cheap wall rugs. Persian rugs as I have said are the best, but costly.
When you say rugs I instantly think of Persia. Or modern day Iran, Iraq, and Turkey. If you do invest in a hand made wall rug, really research where you get it from. Some-most rugs shops employ child labour. And I am sure you would no support that. Good luck.