Mexico Is Falling Behind on Its Global Competitiveness Goals

Mexico has fallen behind on the Ministry of Economy's targets for 2025 and 2026 in the World Competitiveness Index (WCI), established by the Institute for Management Development (IMD).

In 2025, Mexico improved its ranking on the ICM, moving from 56th to 55th place, which the federal government views as reflecting a relatively favorable performance in a complex international environment.

However, the country recorded a score of 48.84 on the ICM, compared to a target of 50.1 set by the Ministry of Economy. Meanwhile, for 2026, it scored 42.85 points compared to the target of 50.4. As a result, it fell from 55th to 62nd place.

This trend reflects developments in the relevant factors, taking into account the data, as well as the national and international economic context. Over the previous four years, Mexico's ranking remained stable between 55th and 56th place.

Although Mexico has strengths related to trade integration, export capacity, and its appeal for the relocation of production chains, the federal government recognizes that there are still constraints related to improving productivity and economic growth, among other factors.

Meanwhile, in the fourth quarter of 2025, the Ministry of Economy released the 2025 Report on Barriers as part of the technical input for decision-making and the formulation of policies aimed at strengthening the country’s competitiveness and economic performance.

Based on this exercise, priority areas were identified to alleviate business uncertainty, boost productivity, improve the business environment, and narrow competitiveness gaps among the states and at the national level.

According to the Secretary of the Economy, the results provided diagnostic insights to guide actions aimed at boosting productive investment, strengthening regional economic capacities, and supporting the achievement of the objectives of the Mexico Plan within the context of competitiveness and economic development.

Mexico’s competitive profile reveals a structural tension between a large, commercially integrated economy with an exceptional and tight labor market and deep institutional weaknesses that increased significantly in 2026.

The deterioration observed this year in fiscal performance, the rule of law, productivity, and the business environment indicates that governance deficiencies are increasingly offsetting the economy’s structural advantages in the manufacturing and labor market sectors.

In terms of strengths, employment in Mexico has become one of the index’s most important competitive assets (12th). Meanwhile, its performance stands at 2.39%, ranking 7th globally.