Country Overview
Mexico is the highest ranked country for procurement in InfraCompass 2020. At a federal level, Mexico’s public procurement processes are transparent and, as of 2017, there are new guidelines specifically for infrastructure and PPP projects. According to the World Bank, Mexico’s processes for the procurement of PPPs and contract management of PPPs during delivery and operations are highly rated.Mexico also has favourable regulatory conditions for investing in infrastructure, supported by a stable financial sector. However, slow economic growth and small stock market capitalization are likely to present key challenges for Mexico’s ability to attract capital and deliver future infrastructure projects. This is also likely to be exacerbated by the long-term impacts of the COVID-19 pandemic.
See Full Overview Data
GDP per capita
10,118 USD
Population
125.9 million persons
Infrastructure quality
72.4 (0-100 best)
Infrastructure investment
1.5% of GDP
Private infrastructure investment
1,836 5-year average, USD millions
Infrastructure gap
1.3% of GDP

Driver Overview

This section shows a country’s rank, ranking change and score for each of the eight drivers. It also categorises each country’s driver performance on a scale from “Emerging” (score from 0-20) to “Global Leader” (score from 80-100).

Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Rank

Score /100

Best practice

28
2
60.5
Top performer
31
2
62.9
Top performer
48
7
66.1
Contender
31
3
77.4
Top performer
1
23
94.9
Global Leader
67
5
17.0
Emerging
33
2
40.6
Contender
48
3
28.4
Contender

Metric Overview

Strengths

Transparency in public procurement

Mexico’s public procurement notices are made available online and tender documents transparently detail procurement procedures. The transparency of the process encourages more participation and competition, which can drive value for money.

Financial stability

Mexico’s financial markets have shown stability, driven by a commitment to fiscal prudence. However, a slowdown in economic growth, recent stagnation of investment and the effects of the COVID-19 pandemic may pose a risk to Mexico’s financial stability.

PPP contract management

Mexico enacted PPP laws in 2012, supported by increased transparency measures. The Ministry of Finance and Public Credit is one of the principal authorities for PPPs in Mexico. Effective management of PPP projects are important to help projects stay on time and budget.

Transparency in public procurement

Mexico’s public procurement notices are made available online and tender documents transparently detail procurement procedures. The transparency of the process encourages more participation and competition, which can drive value for money.

Financial stability

Mexico’s financial markets have shown stability, driven by a commitment to fiscal prudence. However, a slowdown in economic growth, recent stagnation of investment and the effects of the COVID-19 pandemic may pose a risk to Mexico’s financial stability.

PPP contract management

Mexico enacted PPP laws in 2012, supported by increased transparency measures. The Ministry of Finance and Public Credit is one of the principal authorities for PPPs in Mexico. Effective management of PPP projects are important to help projects stay on time and budget.

Top Performing Metrics

Top Performing Metrics

This is defined by the metrics with the highest unweighted score out of 100. 

Upper middle income country average

Financial markets:
Financial stability

Opportunities to Grow

Market sounding and/or assessment

According to the World Bank, there is an absence of market sounding process in Mexico. Adding one could allow the government to determine if there is interest from investors and lenders to provide commercial financing for projects.

Long term GDP growth trend

Mexico’s long-term GDP growth was 2.2%. GDP growth may decrease following the impact of the COVID-19 pandemic.

Stocks traded

Mexico traded stocks worth 7.7% of GDP in 2019, below the Upper Middle Income Countries’ average of 25.6% of GDP. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

Market sounding and/or assessment

According to the World Bank, there is an absence of market sounding process in Mexico. Adding one could allow the government to determine if there is interest from investors and lenders to provide commercial financing for projects.

Long term GDP growth trend

Mexico’s long-term GDP growth was 2.2%. GDP growth may decrease following the impact of the COVID-19 pandemic.

Stocks traded

Mexico traded stocks worth 7.7% of GDP in 2019, below the Upper Middle Income Countries’ average of 25.6% of GDP. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

Metrics to Improve

Metrics to Improve

This is defined by the metrics with the lowest weighted score out of 100, such that these metrics would have the greatest impact on the overall score.

For metrics that have binary outcomes (yes=100/no=0), no comparative income group average is reported.

Upper middle income country average

Funding capacity:
Long term GDP growth trend

Financial markets:
Stocks traded

Detailed Data

This section shows country data for each of the 41 metrics. Note that all data has been normalised on a scale of 1-100. For raw metric data, please download the complete InfraCompass 2020 dataset. 

Where relevant, some metric scores have been inverted, such that all metrics have positive relationships with good infrastructure outcomes. For example, since lower compliance costs make it easier to invest in infrastructure, the normalised value of ‘number of procedures to start a business’ has been reversed such that lower number of procedures are scored closer to 100, and higher numbers closer to 0. In other words, a score of 0 indicates a poor performance, rather than 0 number of procedures.

Governance Regulatory Permits Planning Procurement Activity Funding Financial
Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Metric

Mexico

Upper middle Income Countries Average

Source Link

28.2%

Recovery rate

The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.

63.9 (-5.2)
37.7

20.7%

Rule of law

World Governance Composite Indicator reflecting perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The rule of law reflects whether the law imposes limits of power on the state, private sector and individuals.

36.5 (-2.4)
45.1

18.1%

Post-completion reviews

Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.

Yes
-

15.1%

Shareholder governance

Measures the governance practices that protect shareholders through three dimensions: the extent of shareholder rights index (shareholders’ rights and role in major corporate decisions), the extent of ownership and control index (governance safeguards protecting shareholders from undue board control and entrenchment), and the extent of corporate transparency index (corporate transparency on ownership stakes).

43.3
40.2

12.8%

Political stability and absence of violence score

Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. Estimate gives the country's score on the aggregate indicator, in units of a standard normal distribution i.e. ranging from approximately -2.5 to 2.5.

40.5 (+0.9)
46.1

5%

Infrastructure or PPP agency

Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.

Yes
-

Mexico

Upper middle Income Countries Average

63.9 (-5.2)
37.7
36.5 (-2.4)
45.1
Yes
-
43.3
40.2
40.5 (+0.9)
46.1
Yes
-

Country Overview Data

Mexico is the highest ranked country for procurement in InfraCompass 2020. At a federal level, Mexico’s public procurement processes are transparent and, as of 2017, there are new guidelines specifically for infrastructure and PPP projects. According to the World Bank, Mexico’s processes for the procurement of PPPs and contract management of PPPs during delivery and operations are highly rated.Mexico also has favourable regulatory conditions for investing in infrastructure, supported by a stable financial sector. However, slow economic growth and small stock market capitalization are likely to present key challenges for Mexico’s ability to attract capital and deliver future infrastructure projects. This is also likely to be exacerbated by the long-term impacts of the COVID-19 pandemic.
GDP per capita

10,118 USD

Population

125.9 million persons

Infrastructure quality

72.4 (0-100 best)

Infrastructure investment

1.5% of GDP

Private infrastructure investment

1,836 5-year average, USD millions

Infrastructure gap

1.3% of GDP

GDP

1,274 USD billion

GDP growth rate

0.4%

GDP per capita growth rate

3.3%

Gini coefficient

48.3 (0-100 worst)

Gross Government Debt

54.0% of GDP

Inflation rate

3.8%

Summary credit rating

63.0 (0-100 best)

Unemployment rate

3.4%

Urbanisation ratio

80.0% of total population

Road connectivity

90.3 (0-100 best)

Quality of road infrastructure

4.5 (1-7 best)

Efficiency of train services

3.3 (1-7 best)

Efficiency of air transport services

4.4 (1-7 best)

Efficiency of seaport services

4.3 (1-7 best)

Electricity access

100.0% of population

Electricity supply quality

12.5% of output lost

Exposure to unsafe drinking water

6.8% of population

Reliability of water supply

4.8 (1-7 best)

Digital Adoption Index

0.6 (0-1 best)

Mobile-broadband subscriptions

70.0 per 100 population

Fixed-broadband Internet subscriptions

14.6 per 100 population