There are many indicators to support the theory of Mexico's economic growth. The gross domestic product (GDP) growth is considered to be one of the most reliable indicators of the health of a nation's economy. A healthy economy can only sustain economic growth if the population enjoys the same living standards and disposable income necessary for both private and public welfare programs. And if Mexico's citizens have access to quality health care, they have a stronger incentive to stay healthy and remain in the middle class.
However, despite the positive economic growth, the reality is that poverty remains a major barrier for many in Mexico. In fact, Mexico ranks highest among the Latin American countries for poverty. The poor condition of the soil and water makes agriculture difficult. And, as urbanization occurs throughout the country, poverty levels increase along with the urban population. As a result, despite Mexican economic growth, the poor remain poor.
Fortunately, the government has taken steps to address poverty in the country. A recent study indicates that poverty rates are slowly declining in Mexico due to government initiatives, better education, and technological advances. It is also true that the rate of poverty has been steadily dropping in the last two decades. These encouraging indicators should encourage the Mexican government to further pursue its efforts in alleviating poverty.
The rate of economic growth is also supported by an increasing number of companies in the country, creating a labor force that is able to purchase new products and create new jobs. The creation of jobs and wealth creation drive ensures that individuals have a sense of economic security. In addition, more people are able to buy homes, cars, and other goods that increase their purchasing power. This, in turn, leads to increased wealth and a stronger economy.
Although some see the current Mexico economic growth as a potential threat to the U.S., there is no indication that such fears are justified. In fact, experts note that while the U.S. has its share of economic downturns, Mexico is still lagging behind in many sectors. For example, the poverty rate in Mexico is only 5%, which is much lower than the overall poverty rate in the U.S. Mexico also has far less environmental pollution than the U.S., which can be seen from the amount of oceanfront property that is being left untouched after massive storms. As a result, Mexico's economy is not currently threatened in any way by slowing economic growth.
Other areas of concern that have been raised include the disappearance of jobs in the U.S., a rising crime rate, and violence against women, which are all affecting Mexico as a whole. Nevertheless, . . . . . . the overall outlook for Mexico's economy remains positive. While it is possible that poverty and slow growth will pose challenges for future generations, such concerns do not outweigh the benefits of a strong and growing economy. Mexico's newfound economic might is an example of what occurs when governments create a healthy balance between economic growth and social development. Indeed, experts have shown that such a scenario is more likely to result in long-term positive effects than efforts that focus solely on the short term.