Economic match between Poland and Mexico

Today at 17.00, in his first match at World Championships in QatarPoland will face Mexico. It will be a difficult match, because Mexico is ranked thirteenth in the FIFA ranking, while Poland is only twenty-sixth. However, what would happen if it was not the footballers, but the economies of both countries that stood in the competition?

Poland-Mexico : GDP Per capita

It is considered the best, though still imperfect, measure of the wealth of countries and societies Gross domestic product per capita. It is the sum of goods and services produced in the economy divided by the number of citizens of a given country. Mexican GDP per capita (at the end of 2021) was 9,9 thousand. dollars, at that time in Poland it was almost twice as much, because 17,8 thousand. dollars. However, it should not be forgotten that the entire Mexican economy is about twice as large as the Polish one. Meksyk jest 15th largest economy in the worldwhile Poland occupies the 21st position in this ranking.

There are dark clouds on the economic horizon about the upcoming recession, but both economies have nevertheless performed well over the past two years. In 2021, Poland's GDP increased by 5,7 percent. y/y, and Mexico - by 4,8 percent. Both economies shrank in the pandemic 2020 - but the Polish one by only 2,5 percent. and Mexico – as much as 8,2 percent.

Inflation affects the superiority of economies, but in Poland its growth is particularly strong. In October CPI inflation reached 17,9 percent. y/y, while in Mexico prices increased only by 8,4 percent. y/y Our countries also differ in that inflation in Poland will continue to grow and may exceed 20% at the beginning of next year. In Mexico, meanwhile, it peaked in August at 8,7 percent. and, like in the US, it has already started to decline.

Poland and Mexico are countries with very low unemployment. In Poland, we currently have the lowest unemployment rate in history - 5,1 percent. according to the methodology of the Central Statistical Office and only 2,6 percent. according to LFS methodology, which shows the real scale of unemployment much better. It is therefore lower than the unemployment rate in Mexico, which is 3,3 percent. Mexico's low unemployment rate is due to the lack of unemployment benefits, which means that many people simply do not register as unemployed.

Mexican vs Polish stocks

It is also worth paying attention to the stock exchanges in both countries. The IPC Mexico index, gathering the 35 largest companies from the Mexico City floor, has fallen by 3 percent since the beginning of the year. At the same time, the corresponding WIG20 in Poland lost as much as 26 percent. The Mexican stock market also turned out to be better than the American one because S & P500 fell by 17% over the same period.

At such a moment, it is worth thinking about your money and investing it. The gold standard in this respect is geographical diversification, so that one's portfolio includes companies from various global markets. Mexico is very well suited for this, because the structure of its economy is significantly different from Poland. AND stock exchange in Mexico this year it did much better than Polish or American. Exposure to foreign markets can be obtained by purchasing individual companies, ETFs (e.g. iShares MSCI Mexico ETF) or themed portfolios (e.g. eToro SmartWallet @LatamEconomy, which offers exposure to Latin American companies).

About the author

Pawel Majtkowski - analyst eToro on the Polish market, which shares its weekly commentary on the latest stock market information. Paweł is a recognized expert on financial markets with extensive experience as an analyst in financial institutions. He is also one of the most cited experts in the field of economy and financial markets in Poland. He graduated from law studies at the University of Warsaw. He is also the author of many publications in the field of investing, personal finance and economy.