Mexico 2nd in Latin America in business dynamism
Mexico is the second most competitive country in Latin America, due to its stable macroeconomic environment, its large size stable stock market, its business dynamism. its administrative environment of companies, as well as its Foreign Direct Investment (FDI), in accordance with the Global Competitiveness Ranking of the World Economic Forum (WEF).
According to the WEF, our country occupies position 46 out of 140, with a score of 64.6, although some aspects are better positioned, such as stable macroeconomic environments, with 99.4 points, the size of the stock market, with 80.6 points, while the Average business dynamism is at 65.5 points.
While countries such as El Salvador or Venezuela have a score lower than 33.8, the largest economies in Latin America are again Brazil, Mexico, and Colombia, with 45.8, 46 and 43.5 points, respectively, but the results could improve, because the WEF maintains the growth projection of almost 4 percent of the global Gross Domestic Product (GDP), despite the commercial tensions of the United States with its commercial partners, such as Canada, China, and Mexico.
Among other aspects in which our country stands out is the administrative environment of companies, with 82 points, although it obtained low qualifications in weaknesses of the labor market, when positioning itself in the 100 site, the stock market stiffness in 54.4, as well as the difficulty to attract and retain talented workforce, with 54.8. Likewise, the WEF states that all the members of the Organization for Economic Cooperation and Development (OECD) obtained low marks in the transparency of institutions, with 47.7.
Likewise, in insecurity and violence, the country obtains the 46th position, while in transparency in the fight against corruption it took out 29, out of 113 positions. However, in terms of economies relatively far from the trend line, including Malaysia, Mexico, Indonesia and India, the results suggest that the performance of competitiveness, if maintained, will promote higher and sustained income levels for this year.
Another factor that could affect the economic performance of Mexico and Brazil, according to the WEF, are natural disasters, which take months to recover from the devastating impacts of hurricanes in previous years.
According to the World Economic Forum, competitiveness is vital to reduce poverty rates and improve the quality of life, and even sustains that inclusive and sustainable economic growth will help establish an ambitious 7 percent growth target.
For the WEF, the key for emerging countries such as Mexico or Brazil to increase their growth, is through the fourth industrial revolution, since it offers the potential to skip development stages, implementing new technologies, which would especially benefit those economies that bet on industrialization and the demographic dividend. Recently, the OECD cut its estimate of Mexico's economic growth to 2. from 2.5 percent.