Mexico, the second most competitive economy in Latam:

In the global rating, among 140 countries analyzed, Mexico obtained a rating of 64.60 in the range of zero to 100, which represents an increase of 0.46 points with respect to 2017.

Mexico ranked 46th in the Competitiveness Ranking of the World Economic Forum, and ranked second in Latin America, just below Chile, said the Ministry of Economy (SE).

In a statement, he explained that, in the global rating, among 140 countries analyzed, Mexico obtained a rating of 64.60 in the range of zero to 100, which represents an increase of 0.46 points with respect to 2017. In terms of positions, from 2017 to 2018 it went from place 44 to 46.

The World Economic Forum (WEF) published the Global Competitiveness Report 2018 that contains the new Global Competitiveness Index (ICG 4.0).

This report evaluates the factors that determine the productivity of a country, within the framework of the Fourth Industrial Revolution (with emphasis on issues of social capital, preparation for the future, disruptive businesses, the opening of trade in services, debt, among others. ).

The ICG 4.0 is not comparable with the reports published with the previous methodology (from 2006 to 2017). The new Index is made up of 98 variables and the final grade is integrated into 70% of hard data, which previously represented only 30% of the analyzed variables, the department said.

Under the new methodology, Mexico changed from the fourth to the second position in Latin America, just below Chile, surpassing Costa Rica and Panama. In comparison with the BRIC block, it went from fourth to third place, above India and Brazil. The new ranking is headed by the United States, Singapore, and Germany.

According to the analysis of the WEF, the main strength of Mexico is registered in the size of the market, since it is one of the largest economies in the world in terms of production, trade, and population.

It also presents a high degree of macroeconomic stability, due to a reduction in the public debt / gross domestic product (GDP) ratio, going from 46.04% in 2017 to 45.53% in 2018. In addition, it exhibits great dynamism in business, associated with an adequate regulatory framework.

According to the WEF, Latin America’s competitiveness is still fragile and could be threatened by factors such as trade protectionism and political uncertainty as a result of elections in the region’s largest economies. Insecurity and weak institutions represent two of the main challenges for most countries.

The SE explained that the new methodology led to a significant change in the positioning of the countries. Switzerland, which led the ranking since 2010, moved to fourth place. The United States returned to the first place, which did not reach since 2008.

Meanwhile, India dropped 18 positions to place 58, while Uruguay came back 23 and ranked third in Latin America. Also, Panama went from place 50 to 64, he added.

The agency highlights that the main weakness for Mexico are the institutions, due to the perception of organized crime and police services, as well as a high homicide rate, which is 19.3 per 100,000 inhabitants.

In the labor market, a challenge is identified in terms of non-compliance with workers’ rights and a high labor tax rate, in addition to Mexico’s lagging behind in education, mainly in the ability to teach thinking and reason.

Source: Notimex, Forbes

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