OECD Territorial Reviews: Morelos, Mexico

image of OECD Territorial Reviews: Morelos, Mexico

Morelos is one of the smallest states in Mexico, and close to Mexico City. It contains a number of economic and environmental assets in its territory, but has weak productivity levels. This review looks at how Morelos is seeking to boost its economy, particularly through inclusive growth policies such as enhancing human capital and promoting innovation. It also highlights areas of untapped potential for economic growth across rural areas and the tourism and environmental sectors, and offers suggestions for how Morelos could address governance challenges.

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Assessment and recommendations

The state of Morelos, with its population of 1.9 million inhabitants, is one of the smallest in Mexico. The state is located in the centre of the country just south of the metropolitan area of Valle de Mexico, within close reach of the capital Mexico City. GDP per capita, however, is below the Mexican average and less than half of the GDP per capita in Mexico City. Most of the state’s population, more than 80%, lives in metropolitan areas, making it one of the most urbanised states in Mexico, with a population density of 388 inhabitants per square kilometre. The largest city, Cuernavaca, however represents only one-fifth of the state’s population.


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