The economy of Mexico continues to expand. Over the years, Mexico has worked to attract foreign direct investors. Mexico’s culture and economy are fascinating because, as government changes its policies, it’s possible to gain greater insight into society and culture.
If you want to know what is the economic system of Mexico and the answer to Is Mexico a mixed economy?, continue reading, as we’ll discuss all this and more.
Mexico’s Economy Today
The Mexico economy today reflects growth derived from fiscal prudent, sound decision-making, and political stability. Mexico is an increasingly significant political and economic nation. In the present day, Mexico’s re-emergence as a petroleum exporter nation combines with new status as an advanced developing country.
According to OECD, Mexico economic growth is resilient as the government continues to cut prices on some consumer services, such as electricity and telecommunications. Economists expect continued strong demand for Mexican goods from the United States.
Mexico’s economy has advanced in tandem with the U.S. economy. Budgetary controls are in place to continue to reduce the budget deficit in Mexico.
What’s the Economic Opportunity in Mexico?
Mexico’s USD 2.2 trillion economy continues to focus on manufacturing. Per capita income in Mexico is approximately 33 percent of that in the United States. Mexican income distribution is unequal.
The influence of industrial entrepreneurship is entwined with industrial growth as a whole in Mexico. That said, Mexico’s state provides essential economic assistance, increased access to public credit, production incentives, external competition protections, and provisions of infrastructural facilities.
What Is the Economic System of Mexico?
Mexico is growing from an emerging market economy to a developed economy. A developed economy has:
- Minimum per capita GDP of USD 12,000. Most of the leading economies around the world have even higher per capita GDP levels. The average per capital GDP is currently about USD 30,000 or more.
- Developed economies prioritize healthcare. The Human Development Index (HDI)—an index that reflects the country’s quality of life metrics—is at least 0.8 or more.
- Access to healthy food and clean water are also a priority of the developed nation. Although a small percentage of the developed country’s residents may suffer ill health and poverty, the developed country wants to take people out of poverty and poor living conditions.
According to The World Bank, Mexico’s per capita GDP is about USD 9,005. Economists around the world expect that Mexico’s per capita GDP will reach and exceed the threshold for developed nations this year:
- Mexico’s GDP is currently ranked 11th in the world.
- The Mexico economy ranking is #13th.
- In comparison, the U.K. economy (developed) is ranked #10 and the Italian economy (developed) is 12th.
United Nations’ data show that Mexico’s HDI remains below the developed country 0.8 thresholds. Mexico currently ranks 70th out of 187 nations and continues to outscore average developing nations’ HDI scores.
Mexico isn’t yet considered a fully developed economy but, clearly, the trend is positive. For that reason, Mexico’s economy is either referred to as a strong emerging market economy or an advanced developing country now.
Is Mexico a Mixed Economic System?
Yes, Mexico is an example of a mixed economic system. Private property is protected and individuals are allowed to use capital as they wish. However, the Mexican government also participates in some economic activities to achieve positive social aims.
In conclusion, the answer to What is the economic system of Mexico? is clear. It’s a robust and evolving economy. There’s plenty of opportunity for entrepreneurs with investment capital to achieve positive results in Mexico. Unlike most developing economies in the world, Mexico’s government has implemented budgetary controls to reduce deficits and sustain long-term economic growth.