Is Mexico still considered a Third World country in 2025?
The term "Third World country" is the one that has traditionally been applied when describing Mexico, but it still does not cover the real situation of the country that we experience now in 2025. The present-day Mexico is a diversified and complex country with a huge number of both, problems and opportunities in various fields - economy, industry, and social aspects. Its economic situation can be illustrated by the following data: it has an economy, the most significant sector of which is the services sector, with a per capita income, that reaches 15,000 (GDP) and a population of 5 million, which is definitely a result of the generation of economic revenues that have an impact on the distribution of incomes and, consequently, the awakening of a middle class. Nonetheless, a large number of the Mexican population are poor and the state administration is corrupted; there is a social problem that worries the citizens most of all. This blog discusses taboos such as- the nation's economic classification, social norms, and the first-hand experience of people in the streets, in order to give a final verdict of whether Mexico is still a third world country or has it improved and is it more a developed than underdeveloped country.
The Evolution of the Term "Third World"
At first, “Third World” was used to define countries that were not in the sphere of either the West or the East, i.e. Third World meant neither the First World (capitalist) nor the Second World (communist). The meaning of it has shifted to show the countries that are still undergoing a developing process and who are facing challenges such as poverty, bad infrastructure, and social issues.
The usage of the new term "developing," "emerging," and "middle-income" has become more fashionable with time. It is a humble tribute to the understanding of the diversity of Mexico and similar countries.
Mexico's Economic Classification
It is estimated that the gross national income (GNI) per capita of Mexico was $1400 lower than in 2024, and this despite the nation being classified as "middle-income" which has the same implications as being "upper-middle-income". A large part of the population still doesn't get any income, and this immediately means that central activities in the economy no longer have to be mainly capital-intensive. With the rising number of exports, the country has significantly increased its reserve. In addition, the service sector in the country is growing and contributing to the general wealth of the nation. Mexico belongs to the OECD member states, whose main characteristic is that they are upper-income countries, and this fact even better explains the current economic potential of Mexico.
Notwithstanding enormous successes in its economic revival, Mexico still grapples with a sharp disparity in the distribution of income between the rich and the poor as well as urban and rural citizens. More than 35% of the country's population is under the poverty line, showing that the economic growth has not mainly been for the welfare of people.
Social and Institutional Challenges
On a contrary note, Mexico's remarkable progress in economic terms is yet shadowed by deeply rooted social problems, apart from ongoing economic transformations, some of which are as follows:
Injustice: The differences that are the most glaring are those in education, healthcare, and income, which are different in the best case scenarios in southern states.
Crime: Public safety and economic stability are still under the negative impact of organized crime and violence.
Administration: Corruption and the weakening of institutions are the core of the problem that causes investor confidence and public trust to deteriorate.
Adequate infrastructure: Urban areas can boast of having modern infrastructure, but the situation remains where there are many rural areas that are underdeveloped and lack appropriate road networks, health services, and educational facilities.
Coming up to decades, these four obstacles have persisted as the primary hindrances to Mexico's economic revival and its international status gets murkier.
Indicators of Development
Mexico is one of the countries with high human development index as per the United Nations Development Program (UNDP) which owes to factors like good health, education and income. Even so, Mexico’s Human Development Index (HDI) is still lower than that of the fully industrialized nations and also shows that there are still many disparities in the standard of people’s living.
Looking at mortality rate of infants, literacy rate, and access to clean water, these numbers tell a different story that is positive for Mexico indicating it is closer to being developed in many aspects. The increase in the development of the country in terms of infrastructure, technology use, and urbanization cannot be overlooked.
The Reality for Expats and Investors
Moving to Mexico is difficult, especially when people refer to the “Third World” label. Most expats have modern facilities, as well as fast internet connectivity, good health facilities, and a cultural environment full of life, especially in large cities and areas popular among the expat community.
However, while there are areas in Mexico where poverty and underdevelopment are evident, the country's duality must also be acknowledged, which is vital to avoid false hopes.
For the year 2025, moving to Mexico is an opportunity to witness a transitioning and evolving nation that does not fit into any particular category.
Economic and Political Outlook
There are some factors that make the performance of the economy of Mexico in doubt for the year 2025 since it is likely to experience slower growth, fiscal losses and investment hurdles. Changes in politics and policy uncertainties are also drags on the performance of the economy. Nevertheless, Mexico is still a player of great importance, especially in the global trade arena through USMCA agreements, etc.
The strategic location of the country, the huge number of young professionals, and the immense amount of natural resources constitute a solid base for a further economic expansion, although dealing with the most fragile institutional aspects is of utmost importance.
Do people still call Mexico a Third World country in 2025?
No, not exactly. Although Mexico is formally an upper-middle-income country and has a prospering diverse economic structure and quite satisfying social indicators, there is still a problem with inequality, security, and governance issues that are predominantly characteristic of a developing nation in general.
To the expatriates in Mexico, gaining this multifaceted understanding of the situation in Mexico is vital. Mexico is not a fully developed or underdeveloped country—it is in a state of transition that comes with both opportunities and challenges.
Living and Moving in Mexico requires being a part of an energetic community that is moving at a fast pace yet continues to face real hurdles.
