Mexico is a Latin American federal republic which gained independence from the Spanish colonizers in 1810 and has a population of approximately 124 million people. It is a firmly established middle-income country, with purchasing power parity (PPP) of US $ 2.602 trillion, which has been ranked 11th globally. It has the second highest Gross National income after Brazil in the US $ 1,830 billion in Latin America (OECD, 2017). Currently, 21.5% of Mexicans live in situational poverty. This is beside the 46% who are classified to be living below poverty line. Many argue that this status is due to CONEVAL’s inconsiderate classification system (OECD, 2017).
The World Bank’s poverty line is 40 times lower than that of Mexico, with the parity being the biggest globally. According to the OECD, Mexico has a very high degree of socioeconomic disparity between the rich and the extremely poor (Schreyer, & Mexico, 2016). However, with proper address of these and other social issues such as drug trafficking and health, Goldman Sachs estimates the country to become the 5th largest economy by the year 2050 (Schreyer, & Mexico, 2016). To achieve this, the nation is allocating a huge chunk of its budget towards poverty alleviation and social development. Its economic cooperation with other countries in the region and beyond is very vibrant especially in matters concerning manufacturing and fighting drug trafficking; it is among the founding members of various international organizations such as the United Nations (UNDP, 2018). It has a Big Mac Index of -48.03
In addition to that, Mexico has a quality of Life Index of 125.97, a high health Care index of 69.07 and a low cost of living index at 34.09 (OECD, 2018). 61% of all the people aged 15-64 years in Mexico have a paid job. Its human development index lies at 0.762, giving it the 77th position globally. Its main imports include agricultural machinery, vehicle parts, and refined petroleum and computer products, adding up to US $ 380 billion in the year 2016 (OECD, 2018). This makes Mexico the 15th largest economy globally.
- OECD (2017). Mexico’s Development Co-operation. Retrieved from http://www.oecd.org/
- OECD Better Life Index (2018). Mexico. Retrieved from http://www.oecdbetterlifeindex.org
- Schreyer, P., & Mexico, I. N. E. G. I. (2016). MEASURING GDP IN A DIGITALISED ECONOMY.
- UNITED NATIONS DEVELOPMENT PROGRAMME (2018). Human Development reports for Mexico. Retrieved from http://hdr.undp.org/