IMCO places Mexico in the top 10 least competitive countries in its ranking of 43 nations. The greatest setbacks have been observed in the fields of economics and law.
For the second consecutive year, Mexico ranked 37th out of 43 countries in the International Competitiveness Index (ICI) 2022 carried out by the Mexican Institute for Competitiveness ( IMCO ), which means that the country is among the 10 least competitive countries in the world. report.
The country’s best position, in terms of competitiveness, was recorded between 2005 and 2009, when Mexico ranked 30th.
Subsequently, between 2010 and 2019, Mexico’s position oscillated between places 31 and 33; However, from 2019, the country began to chart a downward trendso the 2021 and 2022 reports (which place Mexico in 37th place) are the worst positions for Mexican competitiveness since they exist.
In the 2022 report, the country improved in five of the 10 sub-indices and maintained the same level in three of them, however, it recorded significant declines in two very relevant sub-indices: the economy and the law.
Mexico, failure of the competitiveness indices in economics and law
The greatest setbacks to Mexico’s competitiveness have been seen in the areas of economics and law.
Disaggregated, Mexico ranked 34th in the economy category, the result of a drop of seven places due to rising inflation and the loss of economic freedom.
Ivania Mazari, IMCO’s evaluation and analysis coordinator, pointed out in an interview that this fall was due to the fact that, while in other countries of the world they have already managed to recover from the economic blow caused by the pandemic, in Mexico they have not yet succeeded.
“In 2020 our economy fell by about 8% and in 2021 the recovery was only 4.8%, for this reason other countries are ahead of us,” he said. .
In addition to the Gross Domestic Product (GDP), inflation has also played against competitiveness, since, while the rise in the prices of certain key products such as energy products has been brought under control, other items, such as food, have reduced the purchasing power of citizens. , added the specialist.
Javier Galán Figueroa, coordinator of the monetary and financial economics specialty at UNAM, pointed out that inflation affects the country’s competitiveness because it increases the operating costs of companies.
“We know that the Bank of Mexico has tried to stabilize prices by raising the interest rate, but we are still seeing inflation not seen in the last 20 years, which is generating uncertainty and cost overruns in the sector that imports supplies,” he said. . .
Regarding the category of rightMexico fell from 39th to 41st place, due to fewer independence of justice and deterioration in the rule of law and the global peace index.
Regarding this indicator, the IMCO specialist explained that, although the country generally respects contracts well, what affects this element the most are human rights violations.
“Mexico is the second country with the highest homicide rate of the countries assessed, it is only below South Africa,” IMCO said.
Despite the fact that Mexico managed to advance in the sub-indices of society, governments, factor markets, international relations and innovation, Mazari indicated that these advances were insufficient to compensate for the sharp declines observed. in economics and law, which led him to stagnate.
“It reflects the country’s continued failure to build the foundations that would allow it to be more globally competitive,” he said.
Meanwhile, in the environmental, political system, and precursor sub-indices, Mexico remained unchanged as it managed to improve in various areas, such as reducing forest area loss and pesticide use, gender equity and better coverage of internet users, to mention a few achievements.
“Mexico must create the conditions to achieve greater productivity and generate well-being for its inhabitants,” reads the report.
The other countries that accompany Mexico in the list of the 10 least competitive countries are:
· South Africa.
· Guatemala and.
On the other hand, the country that recorded the greatest competitiveness in the ranking was Denmark followed by:
· South Korea.
· Finland and.
AMLO had a meeting with Victoria Rodríguez de Banxico: the Mexican economy “is going well and well” This after Banxico issued a second cut to forecasts for the economy’s growth in 2022 in its quarterly inflation report.
The sectors that have made the most and the least progress in competitiveness in Mexico are:
At the global level, the greatest advances observed over the past year have been recorded in four areas. First, the GDP growth since the average annual rate of the countries included in the ICI increased from -4.6% in 2020 to 6.3% in 2021.
Progress has also been seen in the unemployment ratesince the proportion of the Economically Active Population (PEA) who do not work has gone from an average of 7.9 to 7.7%.
The other two advances were observed in a greater trade openness and in increasing protected natural areas.
In contrast, the greatest setbacks have occurred in the area of inflationamong the lowest paid women, a greater perception of Corruptionworse valuation of finances and growth of external debt.
Mexico Daily Post