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Home , State of Mexico, Tabasco, Toluca

Regions and Cities at a Glance 2018 – http://www.oecd.org/regional

Economic trends in regions

Regional gap in GDP per capita, 2003-16 Index of regional disparity in GDP per capita, 2016

GDP per capita in USD PPP Top 20 % richest over bottom 20% poorest regions 2016 2000 Ratio 140 000 Highest region 4 Small regions Large regions (TL3) (TL2) 120 000 48 980 USD 100 000 3 Second highest region 80 000 Mex ico City 39 860 USD 60 000 Mex ico 2 40 000 16 969 USD 20 000 1 Low est region 0 2003 2010 2016 6 636 USD

Country (number of regions considered) Mexico has high regional disparities. GDP per capita in – the country’s second richest region after Campeche, where natural resources significantly contribute to the economy – was more than five times higher than in Chiapas in 2016. Even when resource rich regions such as Campeche or are excluded, regional economic disparities in Mexico remain larger than in any other OECD country. However, regional disparities in terms of GDP per capita have slightly decreased in Mexico over the last sixteen years, when the richest and poorest 20% of regions are taken into account. With a productivity growth of 4.4% per year over the period 2010-16, had the highest productivity growth and strongly converged towards the productivity level of Mexico City, the national frontier in terms of labour productivity (excluding Campeche). recorded the lowest productivity growth of the country with -1% per year between 2010 and 2016 (excluding Campeche and Tabasco due to fluctuation of natural resource prices). Mexico City has the highest youth unemployment rate (13.1% in 2017) in the country, almost ten percentage points above the youth unemployment rate in . Productivity trends, most and least dynamic regions, 2010-16 Youth unemployment rate, 15-24 years old, 2005-15 GDP per worker in USD PPP rate (%) Mex ico City : highest 90 000 25 Highest rate productiv ity in 2016 80 000 (1.9% av erage annual 20 Mexico City 13.1% 70 000 grow th ov er 2010-16) OECD 60 000 15 Aguascalientes: 2nd 50 000 highest productiv ity 40 000 10 Mexico grow th (+4.4% annually) 8% 30 000 Tlax cala: lowest 5 20 000 Lowest rate productiv ity grow th (-1% Guerrero 10 000 annually) 0 3.4% 2010 2013 2016 2005 2010 2015 Source: OECD Regional Database. Notes: (1) Figure on regional gap in GDP per capita: OECD regions refer to the administrative tier of subnational government (large regions, Territorial Level 2); Mexico is composed of 32 large regions. (2) Figure on index of regional disparity: top (bottom) 20% regions are defined as those with the highest (lowest) GDP per capita until the equivalent of 20% of national population is reached, this indicator provides a harmonised measure to rank OECD countries, using data for small regions (Territorial Level 3) when available. (3) Productivity is measured as GDP per employee at place of work in constant prices, constant Purchasing Power Parities (reference year 2010).

Updated the 5th of March 2019

Differences in well-being across regions

Top region Bottom region Mexico City States

Quintana

Roo top top 20%

(1 to (1 to 402) Yucatan

Yucatan Baja

Sur middle middle 60%

Yucatan Mexico City

Guerrero Nuevo Leon

Ranking Ranking of OECD regions Mexico City

Tabasco San Luis Chiapas Chiapas Chiapas bottom bottom 20% Potosi Mexico City Chiapas

Community Environment Life Civic Jobs Access to Safety Education Housing Health Income Satisfaction Engagement services Relative ranking of the regions with the best and worst outcomes in the 11 well-being dimensions, with respect to all 402 OECD regions. The eleven dimensions are ordered by decreasing regional disparities in the country. Each well-being dimension is measured by the indicators in the table below.

The largest disparities in well-being between Mexican states are found in the areas of environment and community, with Quintana Roo ranking in the top 10% of OECD regions and San Luis Potosi and Mexico City each ranking in the bottom 10% of OECD regions in both dimensions. Wide regional disparities also exist in life satisfaction, civic engagement and jobs. The high performing Mexican states fare better than the OECD median region in air quality, life satisfaction, unemployment rate, but fare worse in the ten other well-being indicators. The gap between Mexican states and the OECD average is largest for the indicators homicide rate, disposable income per capita, access to broadband connection and share of labour force with at least a secondary degree.

Country OECD median Mexican regions Average region Top 20% Bottom 20% Community Perceived social netw ork support (%), 2013 81.1 91.4 89.2 66.7 Environment Level of air pollution in PM 2.5 (µg/m³), 2015 15.1 12.4 7.8 22.5 Life Satisfaction Life satisfaction (scale from 0 to 10), 2013 7.0 6.8 7.9 6.5 Civic engagement Voters in last national election (%), 2017 or lastest year 47.7 70.9 58.5 37.2 Jobs Employment rate 15 to 64 years old (%), 2017 60.7 67.7 64.8 55.2 Unemployment rate 15 to 64 years old (%), 2017 4.1 5.5 2.4 5.7 Access to services Households w ith broadband access (%), 2017 46.8 78.0 67.6 24.2 Safety Homicide Rate (per 100 000 people), 2016 19.6 1.3 6.5 40.4 Education Labour force w ith at least upper secondary education (%), 2017 45.5 81.7 56.0 35.2 Housing Rooms per person, 2016 1.0 1.8 1.1 0.8 Health Life Expectancy at birth (years), 2016 75.2 80.4 76.1 73.5 Age adjusted mortality rate (per 1 000 people), 2016 10.0 8.1 9.3 10.9 Income Disposable income per capita (in USD PPP), 2016 3 415 17 695 5 098 2 207 Source: OECD Regional Database. Visualisation: https://www.oecdregionalwellbeing.org. Notes: (1) OECD regions refer to the first administrative tier of subnational government (large regions, Territorial Level 2); Mexico States is composed of 32 large regions. (2) Household income per capita data are based on USD constant PPP, constant prices (year 2010).

Updated the 5th of March 2019 Metropolitan areas in the national economy

OECD population is concentrated in cities* Percentage of population in cities, 2016 UnitedMexico States OECD average people outside cities people outside cities 33% people in cities 121 million 30% 1.2 billion 55% with population people - 67% people - 70% above 500 000 people in cities with live in cities 56% live in cities population between people in cities people in cities with 6% 50 000 and 250 000 4% with population population between 7% above 500 000 50 000 and 250 000 9% people in cities with people in cities with population population between between 250 000 and 500 000 250 000 and 500 000 Source: OECD Metropolitan Database. Number of cities: 92 in Mexico and 1 138 in the OECD. In Mexico, 67% of the population lives in cities of more than 50 000 inhabitants. The share of population in cities with more than 500 000 people is 56%, in line with the OECD average (55%).

Importance of metropolitan areas Contribution of metropolitan areas to GDP growth Cities above 500 000 people, 2016 Cities above 500 000 people, 2000-16

Mexico OECD average % % Mexico OECD average 80 80 68% 70 63% 63% 70 56% 58% 56% 55% 64% 60 60 50 50 40 40 30 30

20 20 areas

10 10 MexicoCity 0 0 327metropolitan % of national % of national % of national All metropolitan1 areas Largest contributor2 GDP employment population The metropolitan areas in Mexico account for 63% of national GDP. Between 2000 and 2016, the Mexican metropolitan areas generated 64% of national GDP growth, in line with their weight in the national economy. In 2016, was the only Mexican metropolitan area with a GDP per capita above the lowest 20% of OECD metropolitan areas. When considering air pollution in terms of levels of PM 2.5, the metropolitan areas of () is the least polluted metropolitan areas in Mexico, and is the only Mexican metropolitan area which is not in the 20% most polluted OECD metropolitan areas. OECD Metropolitan areas ranking Cities above 500 000 people USD PPP 100 000 80 000 60 000 GDP per capita, 40 000 2016 20 000 0 Top 20% richest Bottom 20% poorest metropolitan areas metropolitan areas

Lev el of air pollution in PM 2.5 (µg/m³) 30 Air pollution 20 (PM2.5), 2017 10 0 Top 20% least polluted Bottom 20% most polluted metropolitan areas metropolitan areas

Source: OECD Metropolitan Database. Number of metropolitan areas with a population of over 500 000: 38 in Mexico compared to 327 in the OECD. * Note: Cities are defined here as functional urban areas, which are composed by high-density urban centres of at least 50 000 people and their areas of influence (commuting zone). For more information, see: http://www.oecd.org/cfe/regional-policy/functionalurbanareasbycountry.htm. Updated the 5th of March 2019

Subnational government finance

Subnational government expenditure amounts to USD 2 243 per capita in Mexico compared to an OECD average of USD 6 817. In Mexico, this is equivalent to 51.9% of total public expenditure and to 12.7% of GDP. In comparison, across the OECD, subnational government expenditure accounts for 40.4% of total public expenditure and for 16.2% of GDP. In Mexico, subnational governments carried out 78.9% of total public investment, compared to an OECD average of 56.9%. Role of subnational governments in public investment Subnational government public investment per capita, 2016

USD per capita Mexico OECD average 1 400

1 200 Total public investment 1 000 USD 1 278 per capita Total public investment 3.0% of GDP 800 USD 312 per capita 1.8% of GDP 600 Subnational government 400 Subnational government investment investment USD 727 per capita 200 USD 246 per capita 56.9% of public invest. 0 78.9% of public invest.

Source: OECD Subnational Government Structure and Finance Database.

OECD Regions and Cities at a Glance 2018 The 2018 edition of OECD Regions and Cities at a Glance shows how regions and cities contribute to national growth and the well-being of societies. It updates its regular set of region-by-region indicators, examining a wide range of policies and trends and identifying those regions that are outperforming or lagging behind in their country. Consult this publication on line: https://oe.cd/pub/2n9

Updated the 5th of March 2019