IMF Staff Country Reports

Mexico: Selected Issues Paper

Publication Date:

March 16, 2010

Electronic Access:

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Summary:

This Selected Issues paper analyzes the global crisis and potential growth in Mexico. The paper uses two methodologies to assess to what extent the global crisis is likely to weigh on Mexico’s growth potential. The first approach is sectoral, examining the historical relationship between financial stress and growth in manufacturing industries. The second approach uses a growth-accounting framework to take a closer look at likely developments in the factors that drive potential growth. The paper also examines spending patterns and risks of expenditures volatility from unanticipated shocks in macroeconomic variables under two alternative fiscal rules.

Series:

Country Report No. 2010/070

Subject:

Fiscal policy Fiscal rules Informal employment Labor Labor markets Production Total factor productivity Wages