How does Mexico's high population affect its economy?

Answer 1

Mexico's high population is a blessing, and a curse.

By virtue of having a population of more than 128.55 million, Mexico is the 10th most populated country in the world, and represents 1.76% of the world's population (2016). This population, coupled with the country's varied climates, huge Natural Resources and current economic policies have allowed a diversified economy, which is transitioning to first-world status and is currently ranked in the 11th position (some 2.22 trillion by 2016) in the world.

However, Mexico is still considered a developing economy, where more than 45% of its population is still under the poverty threshold. The biggest reason paradoxically, is its population; most specifically, its population growth, which overtook the economic growth since the 1970's. In 1950, Mexico had a population of only 25.8 million and a GDP per capita of US$2,085; on par to Greece ($1,951) and Japan ($1,873). Sixty-five years later, its GDP per capita grew to US$18,500, while the same countries above grew to $25,500 and $38,200 respectively. The main difference? On both Greece and Japan the economy grew much faster than their populations.

Answer 2

Although they are demonized for "stealing jobs", the reality is that they perform jobs nobody else wants to do, such as babysitting, dish-washing or gardening.

Also, most people think they don't pay taxes and keep using public services "for free", such as health care and education, while in reality, most of them pay consumer taxes and if the opportunity is given, will settle down and pay their fair share of income taxes.

Answer 3

Immigration affects Mexico in various ways. When people leave Mexico, there is limited labor force and when immigrants come into Mexico this will cause competition for the limited resources.