Press Release No. 17/289

Statement by David Lipton, First Deputy Managing Director of the IMF, at the Conclusion of His Visit to Mexico

July 18, 2017

• IMF’s Lipton meets high-level Mexican authorities.
• Mexican economy is demonstrating resilience and is in strong position to manage risks and pressures from global economic and financial environment.
• Lipton praises Mexican policy makers’ prudent macroeconomic management and commitment to difficult but necessary reforms.

Mr. David Lipton, First Deputy Managing Director of the International Monetary Fund (IMF), visited Mexico during July 16–18, 2017, at the invitation of the national authorities. While in Mexico City he had the opportunity to exchange views on the Mexican economy with a range of Governmental Officials—including Bank of Mexico Governor Agustín Carstens, Finance Secretary José Antonio Meade, and Foreign Affairs Secretary Luis Videgaray—as well as academics and representatives of the private sector.

At the conclusion of his visit to Mexico City, Mr. Lipton issued the following statement:

“I was pleased to be in Mexico and meet with Central Bank Governor Carstens, Secretaries Meade and Videgaray, and an array of other representatives from different sectors of the economy. The Mexican economy is facing important challenges and risks, including a temporary rise in inflation, uncertainty over the future of its trade relations, and increased global financial market volatility, among others.

“Despite these challenges, Mexico’s economy continues to grow and show resilience. This is a testament to the country’s fundamentals, prudent macroeconomic management, and a very strong policy framework, which underpins Mexico’s qualification for a Flexible Credit Line Arrangement with the IMF. Mexico remains in a good position to manage risks and pressures emanating from the global economic and financial environment.

“While uncertainty over future trade relations with Mexico’s largest trading partner has increased, the upcoming NAFTA negotiations offer an opportunity to update a 20-year old treaty in a way that would benefit Mexico and all the treaty’s signatories.

“Going forward, perseverance with structural reforms will be critical to boost growth potential. For example, energy reform now underway will also allow for an increase in oil production over the next twenty years. More flexible labor markets, together with better enforcement of workers’ rights and stronger tax compliance, will reduce incentives to remain in the informal sector.”

“Further enhancing governance and transparency are key ingredients to improve business confidence, productivity and foster more inclusive growth in Mexico. I am heartened by the authorities’ measures in this area, including the 2015 Constitutional reform that led to the creation of the National Anti-Corruption System. Completing implementation of the reforms remains an important part of the anti-corruption effort.

“I am encouraged by the determination of the Mexican authorities to address the challenges facing the Mexican economy. The IMF will continue to be Mexico’s partner as it continues to work towards improving the outlook for a better and more prosperous future for its citizens.”