Photo: Almomento

By THE PULSE NEWS MEXICO STAFF

Mexico’s fell two spots in terms of global competitiveness, from 53rd place to 55th place, according to the Institute for Management Development’s (IMD) World Competitiveness Ranking.

The drop in the IMD 2021 ranking places Mexico in the lowest position it has held since 1997.

The IMD accredited the drop in ranking to a poor economic performance in 2020 and a decrease in government efficiency, as well as a weak labor market and an adverse price environment.

The IMD — an internationally acclaimed academic institution based out of Lausanne, Switzerland, that produces an annual report on competitiveness published by the World Economic Forum — also pointed to a weak public policy framework as a key factor in Mexico’s low ranking.

Notwithstanding, the IMD report indicated that, from a long-term perspective, Mexico’s skilled workforce is still its greatest attraction.

In reason years, Mexico’s IMD competitiveness ranking has been a rollercoaster of ups and downs, with the country falling three spots in 2018 (to 51st place), then going up one spot in 2019 (to 50th place), and then down again three spots in 2020.

Competitiveness is defined by the IMD by an ability to compete in national markets and to face international competition.

A breakdown of the four key elements used by the IMD to determine a country’s overall competitiveness indicate that for 2021: Mexico fell from position 38 to 49 in economic performance; it dropped from 55 to 59 in government efficiency; it climbed fell from 48 to 47 in business efficiency; and in infrastructure, it dropped from 57 to 58.

The IMD ranking measures the prosperity and competitiveness of 64 countries examining these four factors through statistical data provided by national organizations and a survey of executives operating within the respective economies.