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OECD Territorial Reviews: Hidalgo, Mexico

image of OECD Territorial Reviews: Hidalgo, Mexico

Hidalgo is one of the smallest states in Mexico. It benefits from its close proximity to Mexico City and contains a number of economic and environmental assets in its territory. After a long period of economic stagnation, the state is now closing up the gap with national standards. Yet, productivity and income levels remain low with respect to national levels, and there exist high socio-economic disparities between the south of the state and the municipalities in the northern and mountainous area. This review looks at how the state of Hidalgo is seeking to boost its economy, particularly through a series of institutional reforms and policies to improve the business environment. It highlights opportunities to accelerate the economic convergence and transit towards high-value added economic sectors. The review also identifies a number of recommendations to promote inclusive growth and reduce its north-south divide and offers suggestions to address governance challenges in the territory.

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Executive summary

The state of Hidalgo has long experienced economic stagnation, yet since the aftermath of the global financial crisis, its economy has performed better than the average of Mexican states. During the 2009-16 period, the growth of the per capita gross domestic product (GDP) in Hidalgo (3.7%) exceeded the country average (2.1%). Its productivity growth (3%) was the sixth highest in the country over the 2010-15 period. Foreign direct investment (FDI) also appears to be surging over the last years, with a relatively greater diversity in foreign sources than at the national level.

English

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