The Mexican Institute for Competitiveness (IMCO) published the State Competitiveness Index (ICE) 2024, a detailed analysis that measures the strengths and weaknesses of Mexico’s 32 federal entities.
Four years into the pandemic, the 32 entities show improvements in economic and infrastructure indicators. GDP per capita and GDP growth have seen significant increases, however, in other aspects, there are deteriorations, especially in health, with an increase in morbidity due to respiratory diseases and infant mortality nationwide.
This report reveals that Mexico City has emerged as the most competitive entity, thanks to its outstanding infrastructure and high level of education. Baja California Sur and Coahuila also stand out, showing strong performance in various economic and social indicators.
On the other end, Oaxaca is positioned as the least competitive entity, as it faces serious challenges, especially in terms of foreign investment and economic complexity.
The ICE 2024 uses 50 indicators grouped into six sub-indices to assess the competitiveness of each entity. Thus, we have that:
Innovation and Economy: Chihuahua stands out for its high proportion of exports and economic complexity, while Oaxaca ranks last.
Infrastructure: Mexico City is the best connected, with a prominent rate of point-of-sale terminals and mobile banking usage. Chiapas, on the other hand, shows low results in access to mobile telephony and internet.
Labor Market: Mexico City has one of the highest average incomes for full-time workers and the highest level of education. Chiapas ranks last in average income and female labor force participation.
Society and Environment: Mexico City leads in life expectancy and availability of hospital beds, while Hidalgo ranks last in access to health services.
Law: Coahuila stands out for its low crime rates and high perception of security, unlike Zacatecas, which has the lowest result in these aspects.
Political System and Governments: Yucatán is distinguished by its regulatory improvement and low perception of corruption, while Baja California has the lowest results in citizen participation and financial transparency.
Regarding the entities preparing for elections such as Mexico City, Chiapas, Guanajuato, Jalisco, Morelos, Puebla, Tabasco, Veracruz, and Yucatán, the report highlights that they face specific challenges in security and the labor market, among others.
As a result, IMCO proposes a series of strategies to boost competitiveness at the state level, among which stand out the creation of state agencies to promote nearshoring. Developing strategies to improve access to telecommunication services and the internet, fostering relationships between industries and educational institutions, promoting the use of digital media for reporting and judicial processes, improving access to healthcare services, and focusing public debt on local productive projects.
The IMCO’s 2024 State Competitiveness Index offers a detailed overview of the strengths and weaknesses of Mexico’s federal entities. As the country recovers from the pandemic, the report underscores the need for local public policies that address the specific challenges of each region, promoting equitable and sustainable growth nationwide.
Comment and follow us on X: @GrupoT21
