Mexico has become the 12th largest economy in the world after it moved up two positions from last year, according to the GDP projections of the International Monetary Fund (IMF) for 2023.

Mexico News Daily reported that the IMF is now expecting Mexico's economic output to rise from $1.47 trillion last year to $1.81 trillion this year. The IMF has reportedly updated its nominal GDP forecasts earlier this month. 

(Photo : EDUARDO MUNOZ/AFP via Getty Images)
A Mexico's supporter holds a Mexican national flag outside Lincoln Financial Field stadium ahead of the international friendly match between Germany and Mexico in Philadelphia on October 17, 2023.

IMF: Mexico Surpassing South Korea and Australia

Based on that projection, Mexico now stands as the 12th largest economy this year, trailing behind economic powerhouses such as the United States, China, Germany, Japan, India, the United Kingdom, France, Italy, Brazil, Canada, and Russia.

The country has notably surpassed South Korea and Australia to achieve this higher ranking in 2023. The Mexican government acknowledged this economic milestone, saying that Mexico is now among the 20 largest economies globally. 

In terms of economic performance, Mexico has experienced a more favorable year than anticipated. The national statistics agency INEGI reported a 3.5% economic growth between January and October, surpassing expectations.

The OECD had initially predicted a 1.6% growth for the Mexican economy in 2023 but later revised its forecast to a more optimistic 3.4%.

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Economic Growth of Mexico

Several factors have contributed to Mexico's economic growth, including robust exports, increased investment from both domestic and foreign sources, and substantial government spending on infrastructure projects. 

The construction industry, in particular, has benefited significantly from these developments. Foreign investment in Mexico has played a crucial role, reaching nearly $33 billion in the first nine months of the year. 

The country anticipates a further increase in foreign investment as more companies move into Mexico as part of the nearshoring phenomenon.

According to Mexico News Daily, the nominal GDP of Mexico is projected to reach $1.99 trillion in 2024, $2.08 trillion in 2025, $2.17 trillion in 2026, $2.26 trillion in 2027, and $2.36 trillion in 2028.

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