According to the International Monetary Fund (IMF), Mexico has ascended to the 12th largest economy worldwide, showcasing a notable leap from the 14th position in the previous year. The IMF’s updated nominal GDP forecast places Mexico’s economic output at US $1.81 trillion for 2023, surpassing both South Korea and Australia in the global ranking.
The country’s economic surge is attributed to robust exports and foreign direct investment (FDI). Notably, Mexico’s manufacturing and construction sectors have benefited from increased FDI and export revenues. In the first three quarters alone, foreign investment neared $33 billion, with an additional $106 billion announced, set to flow into the country over the next few years as part of the nearshoring trend.
Mexico’s economic trajectory has exceeded expectations with a 3.5% growth reported by the national statistics agency INEGI from January to October 2023. This outpaces the OECD’s initial forecast of 1.6%, now revised to 3.4%. Such growth is a testament to the country’s increasing economic stability and investment appeal, particularly in the context of global economic shifts.
Looking ahead, the IMF foresees Mexico overtaking Russia by next year, positioning it as the 11th largest economy. Long-term projections by professional services firm PricewaterhouseCoopers also suggest an optimistic outlook, envisioning Mexico as the world’s 7th largest economy by 2050. With nominal GDP expected to reach $2.36 trillion by 2028, Mexico’s economic landscape is set for continued growth and international prominence.
