Mexico Drops to 18th in 2025 Hinrich-IMD Sustainable Trade Index

Mexico dropped from 17th to 18th place in the 2025 Hinrich-IMD Sustainable Trade Index (STI), which evaluates how 30 economies balance economic growth, social inclusion, and environmental management in global trade. The index scored Mexico 40.62 in the economic pillar, 38.13 in social inclusion, and 87.90 in environmental performance. The report highlights Mexico as one of the countries facing the greatest challenges, citing low growth and limited inclusion.

The United Kingdom ranked first, followed by New Zealand, Australia, Singapore, and South Korea. Using GDP per capita growth as a profitability measure and the Social Mobility Index to assess inclusion, the STI identified four models of economic management.

The first group, labeled “economies in difficulty,” includes Mexico, Ecuador, and Pakistan. These countries struggle with low growth and limited social inclusion. “Without significant social investment or sustained trade competitiveness, these economies risk being trapped in a negative cycle of exclusion and stagnation,” the report warns.

The second group, “balanced growth economies,” includes Singapore and South Korea, where institutions and progressive taxation support both profitability and inclusion. However, rising income inequality in some countries, such as the United States, could erode public trust in trade despite overall prosperity.

The third model prioritizes growth over inclusion. Countries like Bangladesh and India rely on export-led development while social protection systems lag. The report notes that external pressure can prompt reforms, citing Bangladesh’s agreement with global unions to improve textile factory safety.

The fourth group, “mature economies,” includes Australia, Japan, and New Zealand, which maintain high social cohesion but face slower growth. Their challenge is to revive economic dynamism without weakening social protections.

The 2025 report observes that global trade no longer follows shared best practices such as liberalization and multilateralism. Instead, economies operate in a fragmented environment, balancing efficiency with strategic autonomy, profitability with social cohesion, and climate ambition with development sovereignty.

The STI emphasizes that sustainable trade is a process rather than a fixed destination, highlighting differences not only in performance but also in strategic approach. It identifies four general strategies: advanced economies act as institutional leaders, dynamic emerging markets pursue selective modernization, resource-dependent economies face structural constraints, and crisis-affected economies prioritize stabilization as a foundation for resilience.