Comparisons and Analysis: Mexico and Central American Countries

Mexico and the countries of Central America are compared and analyzed on the basis of their geographic, infrastructure, environmental, social and economic characteristics. The objective is to infomr the reader of the differences that exist between the countries of this region and between the region and the world/USA. The data upon which this comparison and analysis of Mexico and Central America is provided at the end of the report in a convenient table.

Geographic Characteristics of Mexico and Central American Countries

Population: The most populated country in the region is Mexico (113 million), followed by the Guatemala (14 million) and Honduras (8 million). The populations of Mexico and the Central American countries are all lower than the United States (309 million). Mexico is significantly larger than any Central American country by a factor of 10.

Land Area: Mexico is also the largest country in the region (1.9 million sq km), followed by Nicaragua (0.12 million sq km) and Honduras (0.12 million sq km). The land area of Mexico and each of the Central American countries are lower than that of the United States (9.1 million sq km) – translating into a significantly larger resource base for the United States. Mexico, which is about a fifth the size of the United States has the broadest resource base for development in the region.

Population Density: when population density is calculated (population divided by land area), El Salvador has the highest population density (299 people/sq km), followed by Guatemala (134 people/sq km) and then Costa Rica (91 people/sq km). With the exception of Belize, the countries in the region have a higher population density than the United States (34 people/sq km). Most countries in this region also have a higher population density than the world’s average (53 people/sq km) with the exceptions of Belize, Nicaragua and Panama.

Urbanization: Mexico and most of the countries of the Central American countries are more urbanized than the the world’s average (20%), but less urbanized than the United States (45%) with the exception of the city of Singapore. Panama is the most urbanized country (39%) in Central America, followed by Mexico (35%), and Costa Rica (31%).  A majority of the capital cities in the region are ‘primate’ cities – relatively large, modern, and dominating the economic, political and social life of these countries.

Analysis of Geographic Characteristics: the larger population densities of Mexico and Central America suggests that this region is crowded. However, although the average population density is high for most countries – many countries have areas with very low population densities (deserts, mountains, tropical rainforests).

The capital cities of these countries are usually the largest city in any given country. Even in the smaller cities of Central America, these capitals may still be well integrated into the global economy. For example, although Panama City is not a huge metropolis, it plays an economically strategic role in trade and international finance because of the Panama Canal. Such cities are usually capable of providing a decent range of social amenities for international living and retirement.

Infrastructure Characteristics of Mexico and the Central American Countries

Internet Users: Costa Rica is the only country in the region with a lvel of internet use that exceeds the world average (27%) with an internet usage rate of about 34%. This is still much lower than the United States (78%). Mexico and the remaining Central American countries have internet usage rates below the world average.

Improved Sanitation: with the exception of Nicaragua, Mexico and Central America have improved sanitation systems that are better than the world’s average (61%), but not quite as good as the United States (100%). Costa Rica (95%), followed by Belize (90%), El Salvador (87%) and Mexico (85%).

Improved Water: Costa Rica has the best improved water systems equal to the United States (100%).  Mexico and the remaining Central American countries have improved water systems in place that are on par with the world’s average (96% of the population with access to improved water systems).

Analysis of Infrastructure: the data provided are national averages. In the largest urban centers, the infrastructure of Mexico and Central America are good with respect to access to internet, improved sanitation systems, and improved drinking water systems. The less developed rural areas tend to bring the national averages down. Despite being one of the smaller countries, Costa Rica seems to have the best overall infrastructure in the Mexico-Central American region.

Environmental Characteristics of Mexico and Central American Countries

Electric Power: Mexico and the Central American countries have electrical power consumption levels lower than that of the world’s average (2,900 kwh/person) and the United States (13,600 kwh/person). The nations with the highest electrical power consumption is Mexico (1,900 kwh/person), then Costa Rica (1,900 kwh/person) and Panama (1,,600 kwh/person).

Carbon Emissions: data on carbon emissions is ranked pretty much the same as electrical power consumption.

Price of Gasoline: the price of gasoline tends to be lower than the world’s average ($1.2/liter) but higher than the United States ($0.8/liter). Nations with the lowest gasoline prices are Mexico ($0.8/liter), Panama ($0.9/liter) and El Salvador ($0.9/liter).

Analysis of Environmental Characteristics: Mexico and the Central American countries share the environmental characteristics of developing countries (low per capita energy consumption). Mexico is a major oil producer which probably accounts for the lowest fuel costs in the region and the highest levels of electrical energy consumptions and carbon emissions.

Social Characteristics of Mexico and Central America

Life Expectancy: with the exceptions of El Salvador and Guatemala, Mexico and the Central American countries have  fairly high life expectancies that exceed the world’s average (67 years). Costa Rica (77 years) even exceeds the United States (76 years).

Public Health: expenditures on public health is below the world average (10% of GDP)  in Mexico and most of the Central American countries. Only Costa Rica has a higher expenditure rate than the world’s average (11%).

Out of Pocket Health Care: out of pocket health care costs are higher than the world average (46%) and the United States (24%) for Mexico and all Central American countries.

Spending on Education:  Belize (5.7%%) and Costa Rica (5.1%) are the only countries spending more on education than the world’s average (4.4 % of GDP). Mexico and the remaining countries in Central America have lower annual spending on education than the world’s average.

Analysis of Social Characteristics: overall, Costa Rica seems to have the best social characteristics among Mexico and the other Central American countries. Despite its stronger resource base and economy, Mexico does not outperform Costa Rica when social measures are evaluated.

Economic Characteristics of Mexico and Central American Countries

Per Capita National Income:  Mexico ($14,000) and Panama ($13,000) are the only countries that have per capita national incomes (adjusted for purchasing power) that exceed the world’s average ($11,000). Costa Rica is a near third with just slightly under $11,000. The remaining countries have per capita national incomes below the world’s average.

Inflation: with the exceptions of El Salvador (1%) and Belize (1%), inflation is higher in Mexico and Central American countries than the United States (2%). However, none of the countries have double digit inflation and most are below 5%. Although scoring well on social characteristics, Costa Rica was noted for the highest levels of inflation in the region (6%).

Ease of Doing Business: countries where it is relatively easy to engage in business activities include Mexico (35), Panama (72), El Salvador (86) and Belize (99) when compared to the United States (5). Scores on this statistic range from 1 to 183, where 1 is the easiest and 183 the most difficult. The remaining countries have ease of doing business scores above 100.

Foreign Direct Investment: Mexico is the clear leader  in foreign direct investment ($19 trillion), followed by Panama ($2 trillion) and Costa Rica ($1 trillion).

Analysis of Economic Characteristics: Mexico and the Central American countries are clearly ‘developing’ countries. Mexico has the strongest economy of all, with Panama coming in a distant second.

Summary of Mexico and Central American Countries

Mexico and the Central American countries are ‘developing’ countries. Mexico and Panama have the stronger economies in the region with a significant amount of foreign money flowing in for investments of one type or another. Costa Rica on the other hand has good infrastructure and social characteristics. These three countries are likely to be the best choices for international living and retirement.

The major urban centers of these three countries can provide the kinds of social amenities that would be desired by most American expatriates living abroad. The costs of living are low and the countries are located in close proximity to the United States.

(photo by: Delirante Bestiole)

References and Bibliography

Data Catalog, World Bank

Geographic Characteristics
Country Name	Population (millions)	Land Area (1000 sq km)	Population Density (people/sq km)	Urbanization (% of pop)
World	6,840.5	129,561,571	52.8	20.1
United States	309.1	9,147,420	33.8	44.7
Belize	0.3	22,810	15.1
Costa Rica	4.7	51,060	91.2	31.4
El Salvador	6.2	20,720	298.9	25.3
Guatemala	14.4	107,160	134.3	7.7
Honduras	7.6	111,890	67.9	13.5
Mexico	113.4	1,943,950	58.3	34.9
Nicaragua	5.8	120,340	48.1	22.7
Panama	3.5	74,340	47.3	39.2
Infrastructure Characteristics
Country Name	Internet Users (per 100 people)	Improved Sanitation (% w/access)	Improved Water (% w/access)	Paved Roads (%)
World	27.1	60.6	95.8	49.1
United States	78.1	100.0	100.0	67.4
Belize	10.8	90.0	99.0
Costa Rica	34.4	95.0	100.0	25.3
El Salvador	14.4	87.0	94.0
Guatemala	16.2	81.0	98.0
Honduras	9.8	71.0	95.0
Mexico	25.4	85.0	96.0	35.3
Nicaragua	3.5	52.0	98.0
Panama	27.7	69.0	97.0	38.1
Environmental Characteristics
Country Name	Electric Power (kWh/person)	Carbon Emissions (m tons/person)	Gasoline Price (USD/liter)	Motor Vehicles (per 1000 people)
World	2,876.1	4.6	1.2
United States	13,653.9	19.3	0.8	809.0
Belize	1,192.2	1.4	1.1
Costa Rica	1,864.6	1.8	1.1	163.0
El Salvador	953.9	1.1	0.9
Guatemala	542.7	1.0	1.0
Honduras	709.2	1.2	1.0
Mexico	1,941.7	4.3	0.8	264.0
Nicaragua	459.2	0.8	1.1
Panama	1,642.5	2.2	0.9	120.0
Social Characteristics
Country Name	Male Life Expectancy (years)	Public Health Expenditure (% GDP)	Out of Pocket Health Costs (% private pay)	Spending on Education (% of GDP)
World	67.4	10.0	46.2	4.4
United States	75.7	16.2	24.2	5.5
Belize	74.2	4.9	100.0	5.7
Costa Rica	76.7	10.5	87.6	5.1
El Salvador	66.9	6.4	87.9	3.6
Guatemala	67.1	7.1	89.2	3.2
Honduras	70.2	6.0	83.5
Mexico	74.1	6.5	92.3
Nicaragua	70.4	9.5	91.9
Panama	73.3	8.3	84.5	3.8
Economic Characteristics
Country Name	Gross National Income (PPP dollars)	Inflation (%/year)	Ease of Doing Business (1 to 183)	Foreign Direct Investment (million USD)
World	11,081			1,343,625
United States	47,120	2	5	236,226
Belize	5,970	1	99	96
Costa Rica	10,840	6	125	1,413
El Salvador	6,390	1	86	-6
Guatemala	4,600	4	101	687
Honduras	3,740	5	131	797
Mexico	14,360	4	35	18,679
Nicaragua	2,630	5	117	508
Panama	12,910	3	72	2,363

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Category: Mexico and Central America Region