Overview
- The IMD World Competitiveness Ranking published June 18, 2026, shows Mexico dropping from 55 to 62 out of 70 economies, a seven-place fall driven by worsening institutional scores.
- Public finances weakened sharply in 2026 with a reported deficit of -4.72% of GDP and interest payments equal to 15.67% of public spending, pushing Mexico down 13 places in the fiscal category.
- Rule-of-law, corruption and government-efficiency metrics fell to near-bottom positions, with state of law at 69, corruption/transparency at 68 and government efficiency at 67, signaling deeper governance problems.
- Countervailing strengths remain: Mexico ranks high on employment (overall rank 12, unemployment 2.39% at rank 7), exports ($664.8 billion at rank 11) and foreign direct investment stock and flows (ranks 16 and 10).
- Productivity, infrastructure and AI skills slipped markedly—productivity/efficiency to rank 58, infrastructure to 64 and AI competencies to 69—which could limit growth, investment attraction and wage gains unless policy action restores institutional capacity.