Growing wealth gap stifles economic progress for many in southern Mexico

Global Business

The southern state of Guerrero is a state in Mexico where inequality is a way of life.

CCTV America’s Martin Markovits reports. Follow Martin Markovits on Twitter @MartinMarkovits 

Growing wealth gap stifles growth for many in southern Mexico

The southern state of Guerrero is a state in Mexico where inequality is a way of life.CCTV America’s Martin Markovits reports.

The plight of lifelong resident, Martin Visoso, is typical. Martin left his seasonal farming job to earn more money, making soccer balls. And he’s still extremely poor.

At that rate, a person making seven soccer balls a day earns less than $3.50, not even enough to buy a single McDonald’s Big Mac.

The rural state of Guerrero generates around $3,500 a year for every person who lives there. In the urbanized Federal State, where you’ll find Mexico City, the GDP per capita is more than 16,5000 a year-a difference of more than 340 percent.

Overall, Mexico’s wealth gap is one of the worst in the Americas-here, the wealthiest 1 percent own nearly the half the country’s wealth.

As the gap widens here and elsewhere in the OECD, the study suggests it could stifle economic growth beyond national borders. In today’s interconnected global economy, stagnation in one country can affect others.

In some rankings, Mexico is the world’s 12th largest economy, but in Guerrero you wouldn’t know it.