Mexico: 2006 Article IV Consultation—Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion
IMF Staff Country Reports, October 11, 2006
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- Mexico: 2006 Article IV Consultation—Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion
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Bibliographic details
- Published: October 11, 2006
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451825695.002
Summary and main policy challenges
- Mexico’s two main economic policy challenges are to fully entrench stability and to remove remaining obstacles to economic growth, necessary to end poverty.
- The floating exchange rate policy continues to serve Mexico well.
- An essential part of Mexico’s stability is the resilience of the financial system.
- The oil sector poses a policy dilemma, exacerbated by institutional constraints and governance issues.
- Although the near-term growth outlook remains closely linked to that of the U.S. economy, medium-term growth depends on structural reforms.
Growth outlook
- Near-term growth outlook: closely linked to the U.S. economy.
- Medium-term growth outlook: depends on structural reforms.
Exchange rate and monetary framework
- The floating exchange rate policy is assessed as continuing to serve Mexico well.
Financial sector
- Financial system resilience is identified as an essential element of Mexico’s macroeconomic stability.
Oil sector issues
- The oil sector is a source of policy dilemmas.
- Problems are exacerbated by institutional constraints and governance issues.
Policy implications and priorities
- Fully entrench macroeconomic stability.
- Remove remaining obstacles to economic growth to address poverty.
- Preserve and support the resilience of the financial system.
- Address institutional and governance constraints in the oil sector.
- Pursue structural reforms to secure medium-term growth.
International Monetary Fund — Mexico: 2006 Article IV Consultation—Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion
Content in this bundle
- Cr06352