Mexico on the Rebound
IMF News, November 8, 2021
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Bibliographic details
- Authors: Swarnali Hannan, Kevin Wiseman IMF Western Hemisphere Department November
- Published: November 8, 2021
Overview
- By Swarnali Hannan and Kevin Wiseman, IMF Western Hemisphere Department; November 8, 2021.
- The Mexican economy is rebounding from its deepest downturn in decades and from its steepest recession in decades.
- Strong US growth and rising vaccination rates are cited as factors spurring the rebound.
Key indicators and developments
- Manufacturing and exports are above pre-pandemic levels.
- Services are re-opening.
- Employment is recovering.
- The pandemic has produced over half a million excess deaths.
- Per capita incomes in Mexico have continued their long-term divergence from the US.
- Poverty has increased further.
Challenges
- Raising productivity remains a key challenge.
- Tackling poverty remains a key challenge.
- The need to mitigate the scars of the pandemic is emphasized.
Policy implications and recommendations
- Strong US growth will help demand rebound and presents an opportunity to:
- Implement policies to secure the recovery.
- Mitigate the scars of the pandemic.
- Deliver strong, inclusive growth.
By Swarnali Hannan and Kevin Wiseman, IMF Western Hemisphere Department; November 8, 2021.
Content in this bundle
- wpiea2020215-print-pdf
- wpiea2021244-print-pdf - Section V discusses policy recommendations and concludes
- wpiea2021246-print-pdf