In 3 years, Mexico has fallen 5 places in world competitiveness, where items such as innovation, environment, society, political system and international relations show a decline, according to the International Competitiveness Index 2021 (ICI).
Economic competitiveness opens or closes the door to attract talent, investment, and human capital, in 2019, Mexico was ranked 32nd, falling to number 35 during 2020 and ranking 37th in 2021, this indicates a drop of five positions from the beginning of the six-year term of President Andrés Manuel López Obrador, according to the International Competitiveness Index 2021 (ICI).
The study analyzed 85 indicators, categorized into 10 sub-indices. In 2021, the most competitive country was Norway, while Nigeria ranked 43rd.
Currently, the 10 most competitive countries are: Norway, Denmark, Switzerland, Sweden, Ireland, the Netherlands, Finland, Austria, Australia, and South Korea, in contrast, the least competitive economies were: Colombia, Peru, Turkey, Mexico, Brazil, South Africa, Argentina, India, Guatemala, and Nigeria.
Among the 10 sub-indices evaluated by IMCO is innovation, law, environment, society, political system, government, factor market, economy, precursors, and international relations.
Mexico fell in five of the 10 sub-indices, where the environment stands out; with the setback of a place due to a lower percentage of electricity produced by non-polluting energy sources; society regressed two places as did the political system; International relations fell 10 places due to the fall in net foreign direct investment and worse performance in the trade freedom index, finally, innovation fell another place.
Likewise, Mexico maintained the same level in three sub-indices and improved in two: the factor market is in position 20, advancing one position thanks to improvements in the flexibility of labor laws, as well as the economy sub-index, where it advanced four positions as a consequence of the increase observed in international reserves and reduction of external debt.
“Unfortunately, in 2019 Mexico was one of the few countries whose growth rate was minimal and negative, the next period that was in a pandemic this affected us all. Although the growth data is more alarming in the last year, the truth is that the effect was distributed and gave us an advance compared to our previous figure, “explained Ivania Mauari of the Mexican Institute for Competitiveness (IMCO).
Regarding the investment per EAP of the most competitive countries, it is an average of 29,167 dollars and the GDP per capita in 60,488 dollars, compared to the investment per EAP of 3,014 dollars of the least competitive countries and 7,107 dollars on average of the GDP per capita.
A key element analyzed was the Gini coefficient (the measure of inequality) where Mexico and the other nine least competitive nations rank at 46, compared to the 30 coefficient of the 10 most competitive countries, where economic growth is equal. .
“The least competitive countries have a fraction of GDP per capita of $ 7,107 while on average it is almost $ 30,000. Investment is that variable that promotes the growth and development of economies. The gini coefficient seems impressive to me, the 10 least competitive countries are also the most unequal. It is also related to the variables that we see in the index, “said Valeria Moy, General Director of IMCO, at a press conference.