Mexico dropped from 53rd to 55th place in terms of its economic competitiveness, with a rating of 4.34 on a scale of one to seven, down by two-tenths from the 2012 rating, the Economy Secretariat said, citing the World Economic Forum's Global Competitiveness Report 2013-2014.

The opinions of business leaders account for 70 percent of the ranking, while economic indicators make up the other 30 percent of the final number, the secretariat said.

"This ranking is a reflection of the opinions that the country's business leaders have of the competitive conditions in Mexico," the secretariat said.

A total of 320 business leaders were surveyed between March and May in Mexico.

Mexico dropped in the rankings due to a combination of factors, including a rise by other countries, the Economy Secretariat said.

The trends highlighted in the report reflect the slow recovery of the global economy and it is important to note that Mexico outperformed all of its BRIC (Brazil, Russia, India and China) competitors except for China, the secretariat said.

China remained in 29th place, while Brazil dropped from 48th to 56th; India fell from 59th to 60th place; and Russia climbed from 67th to 64th.

Chile was the only country in Latin America that ranked higher than Mexico, grabbing the No. 34 position, while Peru was 61st, Colombia was 69th and Argentina was 104th.

The report confirms the government's conclusion that Mexico needs "large-scale" structural reforms to promote productivity, the Economy Secretariat said.

Mexico must work "to improve some of the most pressing challenges the country currently faces in terms of domestic competition (100th), a skills gap due to a poor-quality educational system (119th), and labor market rigidities (99th)," the Global Competitiveness Report 2013-2014 said. EFE