Mexico’s overall B1 rating in the IMD Prosperity Report for Latin America and the Caribbean 2026 clearly illustrates one of the central paradoxes the report identifies in the region.
Mexico is the most striking case in the report. It ranks 1st in economic complexity and 4th in productivity. However, its rule of law ranks 27th (out of 34).
No other country better illustrates the report’s central paradox, and none has more to gain—or lose—at this critical juncture of global trade restructuring.
IMD Prosperity Report
The B1 rating in the Index places Mexico in the third tier out of a total of eight, below eight other countries. This result clearly reflects one of the main structural paradoxes identified by the report in the region.
The methodology incorporates a comprehensive statistical approach to evaluate and compare the performance of Latin American and Caribbean countries across 78 indicators. This data is drawn from 22 international databases.
Of the 2,652 possible data points (34 countries and 78 indicators), a significant number (421) are missing for the smaller Caribbean economies and some low-income Latin American countries, reflecting persistent capacity constraints in national statistical systems.
To address this, 397 missing scores are imputed using the average values from a group of peer countries. We selected peers based on similarities in the HDI. In addition, we took GDP per capita into account.
José Caballero, lead author of the IMD Prosperity Report for Latin America and the Caribbean 2026 and chief economist at the IMD World Competitiveness Center, noted that one of Latin America’s biggest problems is that certain countries have economic strengths, but at the same time weaknesses that prevent them from moving forward.
Pros and Cons
The main strength of Mexico’s profile is its economic complexity, which ranks first in the region. This indicator reflects a diversified industrial base integrated into global supply chains. It is also supported by productivity ranking fourth (US$57,551 PPP), technology exports ranking fourth (17.6%), and scientific output ranking second (21,027 published articles).
In economic terms, these indicators position Mexico among the strongest candidates for higher levels of prosperity. Industrial depth, export performance, and scientific capacity demonstrate a competitive profile in productive and managerial variables, aligned with relatively more developed economies within the region.
However, the governance and institutions pillar falls to a C1 rating. The rule of law scores 0.41 (27th place), one of the lowest scores. Furthermore, the political terror index ranks 19th and corruption control scores 0.47 (15th place), limiting economic confidence.