How Mexico is the World's Slowest Emerging Market?

The Mexican Economy is the second largest in Latin America and ranks amongst the top 15 world wide by GDP alone.
For more than four decades, it’s been considered a leading Emerging market. A future economy to watch. Yet at the same time, Mexico appears to be stuck in the dreaded Middle Income trap.
Growth between 1990 and 2019 averaged 2.4% per year, half the standard Emerging Market rate.
Raising the question… why?
Why has Mexico failed to make the jump from Middle to High Income?
Why did it’s Economy contract more in 2020 than most?
What does it have going for it?
And how can it overcome its economic challenges?

-- TIMESTAMPS --
0:00 Intro to Mexico's economy
0:48 How Mexico's economic history impacted its economy
5:41 What are Mexico's economic strengths
7:53 What are Mexico's economic challenges
10:59 What could the future hold for Mexico's economy
11:52 Summing up Mexico's economy
12:38 Closing

#Mexico #MexicanEconomy #Economy

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[NobleWolf]

From 2010-2020 I’ve seen Mexico change dramatically. More paved roads and less slums. Although Mexico still needs ALOT to progress, the progression is visible and I really hope it eventually becomes a 1st world .

[Oracol]

A key element is ending corruption. Easier said than done

[Calizen]

I’m personally from a town in the state of Zacatecas specifically a large town called Jerez and over the last 10 even 5 years it has changed a LOT there is definitely less poverty, many more jobs, less crime and people having generally more money. Obviously there is still people here who are poor and aren’t privileged but compared to how it was before, it is definitely more better.


Edit: sorry if my English is not good I am still learning 😊

[mmontealvo]

I lived and worked in Mexico City. Mexican blue collar class are very generous, and also very sensitive. Productivity is low because employers underpay therefore, morale is low . You get what you give.

[jimsalmon]

Mexico’s aversion to debt is going to lead to a more stable economy in the long run. Here in the US, our addiction to debt led to the crash of 2008, and we haven’t learned our lesson.

[ayoitsyayo]

I hope that the slow pace means more solid foundations

[WanderingVincent]

So TL;DR - Mexico's income inequality (Individual & Regional) & a focus on 'Hard Work' not 'Smart Work' is what's holding them back, but Mexico is still a Latin sleeping dragon

[donaldclifford]

The middle income trap isn't the worst thing in the world. The economy is improving, slowly. And the demographic trend looks favorable, going forward, as the relatively young population ages and becomes more productive.

[NJA]

One of the best videos I’ve seen explaining Mexico’s economic growth.

[jorgemancilla]

I see Mexico treating equality to all
Foreign investors and this means everybody have to pay their corresponding taxes.

Mining companies from Canada
Petroleum companies from US
Clean Energy companies from Spain

[chicosquelloran]

Fighting corruption, smashing criminals, and make it easier to start a business and pay taxes, you wouldn't believe how complicated it is in Mexico to open a company and pay taxes. That prevents a lot of job creation or keeps meager employment.

[Josfarid]

This video should be called: "We are pissed that Mexico is not taking loans from our loan sharks at IMF"

[so]

The largest factor that I've noticed in Mexico is that the general public is very risk-averse. This translates to investors and governments. It seems that past crises made Mexicans weary of long-term investment and therefore haven't made any truly ambitious plans in the last 25 years. It's clear to me, that a large-scale investment in the public school system would be the best way to go but this would start producing economic results 30 years from now. However, with such a discrepancy between the quality of education between private and public school, the bottom 40% of the population will never have a chance to rise up otherwise.

[maximilianodehabsburgo]

As a mexican entreprenuer in the Beauty sector, I see a lot of potential!!

[TheDD]

I agree with the productivity issue. A large portion of the population frowns upon entrepreneurship and only prepare themselves often in a very mediocre way to hold a job and if it's a bureaucratic job, which jobs really don't produce anything, so much the better for them. Another large problem is a weak legal system, which does not protect business, especially small business.

[sagejavier]

i dont agree with a lot stuff this guy said like mexico doesent produce lot of stuff youre so wrong my buddy

[mwasovski]

The first analysis of Mexico's economy I found that is actually good. Mentions poverty and inequality. The first one that mentions the ridiculously low amount of investment in R&D even compared to Argentina or Brazil which are already below the world's average.

[edgarandre]

I was born in Mexico my parents are from the Czech Republic
and I think that Mexico is a country that is growing rapidly and every year that passes many foreigners come to participate in the economy and contribute their ideas for the growth of this country

[coldmountaindew]

Mexico has the potential to become a super power

[reborn]

IMF: México will recover at 2026
Also IMF: México will bounce about 60% of what it lost and next year will grow the rest.
(Note the IMF is one of the ones with the lowest numbers for México)