Government efficiency in Mexico moved up one position, although it remained behind, in the IMD’s World Competitiveness Ranking 2024.

In net terms, it moved from 60th to 59th place in this competitiveness ranking.

In absolute terms, however, it remained in 60th place. This time Ghana and Nigeria joined the ranking, which were positioned below Mexico, and Puerto Rico, whose score was better than Mexico’s).

How did Mexico’s positions related to government efficiency change in the 2023 and 2024 rankings: public finances (down from 44th to 48th), fiscal policy (up from 46th to 20th), institutional framework (down from 59th to 61st), business legislation (down from 61st to 63rd) and social framework (remained at 58th).

Government efficiency

In 2024, IMD’s World Competitiveness Center (WCC) ranked the competitiveness of 67 economies based on four factors: economic performance, government efficiency, business efficiency and infrastructure. 

These factors capture various aspects of competitiveness, such as macroeconomic stability, fiscal policy, institutional quality, market openness, business dynamism, innovation, education, health and environmental performance. 

The 2024 ranking shows that the most competitive economies combine strong economic performance with efficient and effective public and private sectors, high-quality infrastructure, and human and social capital.

Mexico

What follows are Mexico’s global rankings on government efficiency indicators: 

Strengths 

• Social security tax rate for employees (6).
• Tariff barriers (9).
• Central bank policy (12).
• Employer social security tax rate (13).
• Total tax revenues collected (16).
• Unemployment rate-gender ratio (26).
• Start-up days (27).
• Personal income tax collected (29).
• Total general government debt (%) (31).
• Disposable income (37).

Weaknesses

• Homicide (66).
• Public sector contracts (66).
• Transparency (66).
• Bribery and corruption (66).
• Rule of law (65).
• Parallel economy (65).
• State ownership of enterprises (64).
• Capital markets (64).
• Protectionism (63).
• Business creation (61).

Measurements

National competitiveness rankings are an essential ingredient in the formation of national strategies because they provide comprehensive and objective assessments of countries’ strengths and weaknesses vis-à-vis other countries. 

They also serve as a benchmark for measuring progress and identifying areas for improvement.