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

IMF News, July 18, 2017

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

Visit dates: July 16–18, 2017.
Press Release No. 17/289; statement dated July 18, 2017.
Meetings with: Bank of Mexico Governor Agustín Carstens, Finance Secretary José Antonio Meade, Foreign Affairs Secretary Luis Videgaray, academics, and representatives of the private sector.
Media contact listed: PRESS OFFICER: Aaron Ranck & Andrew Kanyegirire; Phone: +1 202 623-7100; Email: MEDIA@IMF.org.

“The Mexican economy is demonstrating resilience and is in strong position to manage risks and pressures from global economic and financial environment.”
Mexico “continues to grow and show resilience.” This resilience is attributed 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.”

Key challenges and risks highlighted:
- “a temporary rise in inflation,”
- “uncertainty over the future of its trade relations,” and
- “increased global financial market volatility.”
On trade: “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.”

Lipton emphasizes that “perseverance with structural reforms will be critical to boost growth potential.”
Specific reform areas and expected outcomes:
- Energy reform: “energy reform now underway will also allow for an increase in oil production over the next twenty years.”
- Labor markets: “More flexible labor markets, together with better enforcement of workers’ rights and stronger tax compliance, will reduce incentives to remain in the informal sector.”
Governance and transparency: “Further enhancing governance and transparency are key ingredients to improve business confidence, productivity and foster more inclusive growth in Mexico.”

Positive note on recent measures: Lipton is “heartened by the authorities’ measures in this area, including the 2015 Constitutional reform that led to the creation of the National Anti-Corruption System.”
Emphasis on implementation: “Completing implementation of the reforms remains an important part of the anti-corruption effort.”

Lipton: “I am encouraged by the determination of the Mexican authorities to address the challenges facing the Mexican economy.”
IMF role: “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.”

Statement by David Lipton, First Deputy Managing Director of the IMF, at the Conclusion of His Visit to Mexico (July 18, 2017).