Saturday, January 18, 2025

Mexico is now the 12th largest economy in the world

Mexico is now the 12th largest economy in the world, according to International Monetary Fund (IMF) GDP projections for 2023, an improvement of two positions compared to last year.

The IMF updated its nominal GDP forecasts earlier this month, and is now predicting that Mexico’s economic output will be US $1.81 trillion this year.

Lázaro Cárdenas port in Michoacán
Mexico’s strong exports this year have contributed to GDP growth. (Cuartoscuro)

Based on that projection, Mexico is the 12th largest economy in 2023 behind the United States (No. 1), China, Germany, Japan, India, the United Kingdom, France, Italy, Brazil, Canada and Russia.

Mexico’s nominal GDP was $1.47 trillion last year, making it the 14th largest economy in the world. This year, it passed South Korea and Australia to become the 12th largest economy, according to the IMF data.

The federal government highlighted the improvement in a post to its official account on the X social media platform on Thursday.

“Mexico is among the 20 largest economies in the world. We are ranked 12th and moved up two places with respect to last year,” the post said.

Steel manufacturing plant
Mexico’s manufacturing sector has seen strong FDI and export revenue this year. (Deacero Ramos Arizpe)

Contradicting that comment, the post included a graph that said that Mexico had moved up four places compared to 2022, as was widely, albeit erroneously, reported.

The Mexican economy has had a better than expected year in 2023. The national statistics agency INEGI reported Friday that the economy grew 3.5% in annual terms between January and October.

The OECD predicted in November 2022 that the Mexican economy would grow by just 1.6% this year, but is now forecasting that GDP will expand 3.4% in 2023.

Exports and investment in Mexico – both from abroad and within the country – have spurred the economy this year. The latter, which includes government spending on infrastructure projects, has been a particular boon for Mexico’s construction industry.

Foreign investment, which totaled almost $33 billion in the first nine months of the year, is expected to increase in coming years as more companies move into the country as part of the nearshoring phenomenon. Foreign companies announced investments in Mexico totaling US $106 billion in the first 11 months of the year, with that money expected to flow into the country in the next two to three years.

The publication of the IMF data showing that Mexico had become the 12th largest economy in the world came five months after President López Obrador noted that the country was forecast to become one of the world’s top 10 economies in the coming decades.

Professional services firm PricewaterhouseCoopers predicted in 2017 that Mexico will be the 7th largest economy in the world in 2050.

The IMF’s projections currently go out to 2028.

The Washington D.C.-based financial agency is forecasting that Mexico will pass Russia to become the 11th largest economy next year and remain in that position in 2025, 2026, 2027 and 2028.

Mexico’s nominal GDP is projected to reach $1.99 trillion in 2024, $2.08 trillion in 2025, $2.17 trillion in 2026, $2.26 trillion in 2027 and $2.36 trillion in 2028.

Mexico News Daily 

15 COMMENTS

  1. Seems that Mexico could be as prosperous as California within a decade or two. Mexicans certainly work hard and the country has natural resources. Question whether the political sector can improve income and wealth inequality? And hope for a land use and urban planning renaissance to help channel development bonanza into livable communities, rather than chaotic urban sprawl.

  2. Hope that some of that money will be spent on improved infrastructure like potable water, sewage, urban planning, road conditions, etc.

  3. I agree with you all I’ve been reading the articles sent by email quite intently and found the PESO strength around the World is of interest. I’ve worked London in the past an for some reason have found myself drawn to Mexico Financially, after putting £4 on my phone have been able to speak to Mexico and have now been able to try and build up a relationship with myself and Pemex the Oil Giant an therefore a relationship potentially for Burnley, Lancashire and Mexico if Developed right. I’ve started Networking quite a lot with a former Colleague from a Neighbouring Town through Liverpool and will be attempting to find paid Employment shortly across the Atlantic and into Mexico as I’m Scheduled to Participate in Volunteer Work Guatemala February 2025 and planned visit into Mexico City to try and talk to Pemex

    Kind Regards

    Christopher Shackleton

  4. With Mexico’s standing having risen and continuing to rise, US politicians have had to focus their hate on China. Perhaps America will come to realize that the government cannot continue to crap on Mexico/Mexicans. Especially when Mexico’s economy outperformed that of the US and the politics in Mexico are seemingly less corrupt. Even more progressive, as Mexico will see a female President in 2024 – amazing for a Country in which machismo still plays a role in defining traditional gender roles. Perhaps we will see joint ventures to try and resolve the social issues plaguing both Countries and hampering even more growth.

    The times, they are a changing!

    • It’s crazy that Mexico is one of only 2 countries that border the largest economy in the world and it’s taken this long to take advantage of it. The distrust of China will continue to pivot the US’s economic attention towards North and eventually South America for its supply chain. Mexico needs to take advantage of that relationship.

  5. Acordado. Estaba hablando con un concejal local, el Sr. Edward Walton, sobre México y él es un fanático.

  6. There’s growth and then there’s income distribution. A surging middle class has been a dream dashed again and again by currency devaluation and inflation, both under more controlled management this decade. An economy growing at 3.5% is the right direction, but alone will not address poverty and opportunity challenges. Government spending across Mexico’s 2,500 municipalities has to address staggering shortfalls in public health, public safety, and primary education. Spend now, or these cycles of lost opportunity will forever drag down Mexico’s real potential. Grand federal programs of the AMLO era are a start, but it’s time to unleash Ane empower human capital.

Comments are closed.

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