Mexico is a country with a rich history and vibrant culture. But when it comes to the question of whether Mexico is a rich country, the answer is not so simple. While Mexico is not one of the wealthiest countries in the world, it is not one of the poorest either. In this article, we will explore the Mexican economy and its place in the world to better understand how rich Mexico really is.
Mexican Economy Overview
Mexico has a mixed economy that is heavily dependent on trade with the United States. According to the World Bank, Mexico is the 15th largest economy in the world, with a gross domestic product (GDP) of approximately $1.42 trillion USD as of 2022. The country is also the second-largest economy in Latin America, after Brazil.
Mexico has a diverse economy that includes manufacturing, agriculture, and tourism. The manufacturing sector is particularly important, accounting for nearly 17% of Mexico’s GDP. Some of the country’s largest industries include automotive, electronics, and aerospace manufacturing. Mexico is also a major exporter of oil and gas, although the sector has declined in recent years.
In terms of agriculture, Mexico is a major producer of fruits, vegetables, and livestock. The country is also known for its tequila and other alcoholic beverages. Tourism is another important sector, with Mexico’s beaches, historic sites, and vibrant culture attracting millions of visitors each year.
Mexico has a large and growing middle class, which has helped to fuel domestic consumption and economic growth. However, the country also faces a number of economic challenges, including income inequality, corruption, and a high poverty rate.
How Rich Is Mexico?
Mexico is the 15th richest country in the world if you go by the size of its economy. However, that single data point is not enough to get a good picture of how rich is Mexico and can be deceiving.
When it comes to measuring the wealth of a country, GDP is one of the most commonly used indicators. However, GDP alone does not tell the whole story of a country’s economic situation. Other factors, such as income inequality, poverty rates, and access to basic services, also play a role in determining how rich or poor a country is.
According to the World Bank, Mexico had a GDP per capita of $10,948 USD as of 2022. This places the country in the upper-middle-income, alongside countries such as Brazil, China, and Thailand. However, Mexico’s GDP per capita is still well below that of high-income countries such as the United States, Canada, and Japan and even below smaller Latin American economies like Panama and Costa Rica.
Despite its relatively high GDP per capita, Mexico still faces significant economic challenges. The country has one of the highest levels of income inequality in the world, with a Gini coefficient of 0.46 in 2018. This means that wealth and income are highly concentrated in the hands of a few, while the majority of the population struggles to make ends meet.
Poverty is also a significant issue in Mexico. According to the National Council for the Evaluation of Social Development Policy (CONEVAL), 41.9% of Mexicans lived in poverty in 2020, with 7.9% living in extreme poverty. This means that nearly half of the country’s population is unable to meet their basic needs for food, housing, and healthcare.
Access to basic services is another challenge in Mexico. While the country has made significant progress in expanding access to education and healthcare in recent years, there are still significant gaps in coverage. For example, according to the Organisation for Economic Co-operation and Development (OECD), only 61% of Mexicans have access to basic sanitation services, compared to an average of 90% in OECD countries.
In addition to these challenges, Mexico also faces a number of other economic and social issues, including corruption, crime, and political instability. These factors can make it difficult for the country to attract investment and grow its economy over the long term.
Mexico GDP
The following table compares Mexico’s GDP to other countries so you can get a better idea of where it stands in terms of wealth.
GDP Ranking
| Country | GDP (USD trillions) | Ranking |
|---|---|---|
| United States | $25.1 | 1 |
| China | $18.3 | 2 |
| Japan | $4.3 | 3 |
| Brazil | $1.9 | 12 |
| Mexico | $1.4 | 15 |
| Spain | $1.38 | 16 |
| Norway | $0.5 | 30 |
| Chile | $0.3 | 45 |
| Finland | $0.281 | 50 |
| Luxembourg | $0.082 | 72 |
As mentioned above. More data points are required to get a better idea of a country’s economy. I added Luxembourg in purpose so you can compare it to the GDP per capita (per person) on the table below.
GDP per capita ranking
| Country | GDP per capita (USD) | Ranking |
|---|---|---|
| Luxembourg | $127,673 | 1 |
| Ireland | $102,217 | 2 |
| Norway | $92,646 | 3 |
| United States | $75,180 | 7 |
| Finland | $50,818 | 16 |
| Spain | $29,198 | 36 |
| China | $12,970 | 65 |
| Mexico | $10,948 | 70 |
| Brazil | $8,857 | 80 |
| Thailand | $7,631 | 84 |
Summary
- Mexico is the 15th largest economy in the world, making it a rich country in terms of resources and total wealth
- Despite this, there is a lot of inequality in Mexico
- Mexico is considered a developing economy and is part of the G20 forum for international economic cooperation
