North-South divide indicated by study of Mexican states’ competitiveness

The Mexican Institute for Competitiveness (Imco, for its acronym in Spanish) indicated that the most competitive Mexican states are Mexico City, Aguascalientes, Nuevo León, Colima and Querétaro.

Based on the results of its 2016 State Competitiveness Index (ICE, for its acronym in Spanish), which measures the capability to forge, attract and retain talent and investments, the country’s least competitive states are Guerrero, Oaxaca, Chiapas, Michoacán, Veracruz and Tabasco, Notimex reported.

ICE is made of 100 indicators, categorized into 10 sub-indexes, and it shows the progress and setbacks in each of the sub-indexes in the 32 entities from 2012 to 2014, out of the indicators evaluated, 53 improved, 30 receded and 17 remained the same.

The agency reported that the states that progressed the most in the general index were Nayarit, Sonora and Puebla, while those that fell the most were Baja California, Veracruz and Baja California Sur.

It commented that Mexico is a territory with enormous asymmetries in its competitiveness potential, and said that the six factors of the most developed states are: international trade, competitive industries, energy, labor formality, more companies and relevant education.

IMCO noted that the five states account for 56 % of exports (Baja California, Chihuahua, Coahuila, Nuevo León and Tamaulipas), while 13 states do not even add up 3.0 % of the national total.

In a statement, it stressed that formal jobs are better paid, and compared that in Mexico City a formal worker earns an average of 8 thousand 674 pesos, while in Chiapas they earn 6 thousand 715 pesos.

Source: notimex.gob.mx