Mexico: 2018 Article IV Consultation-Press Release; Staff Report; and Staff Statement
IMF Staff Country Reports, November 8, 2018
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- Mexico: 2018 Article IV Consultation-Press Release; Staff Report; and Staff Statement
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Bibliographic details
- Published: November 8, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484383667.002
Summary and outlook
- A new political landscape is shaping up in Mexico following the July elections.
- President-elect López Obrador has promised to reduce corruption and crime, and boost social spending and public investment, while maintaining fiscal prudence.
- The incoming administration will inherit an economy with very strong fundamentals and policy frameworks that has exhibited resilience in the face of a complex external environment.
- Mexico still confronts significant challenges—namely to strengthen growth while reducing poverty and inequality—and has yet to win the fight against corruption and crime.
- Uncertainty associated with the global economic environment and the policies of the incoming administration persists.
- Prospects hinge on the steadfast implementation of structural reforms while ensuring continued macroeconomic stability.
Major findings and challenges
- Strengths:
- Very strong fundamentals and policy frameworks.
- Resilience in the face of a complex external environment.
- Key challenges:
- Strengthen growth.
- Reduce poverty and inequality.
- Win the fight against corruption and crime.
- Risks:
- Continued uncertainty associated with the global economic environment.
- Uncertainty associated with the policies of the incoming administration.
Policy implications and priorities
- Maintain fiscal prudence while boosting social spending and public investment as promised by the incoming administration.
- Steadfast implementation of structural reforms is essential to improve prospects.
- Ensure continued macroeconomic stability to manage external and policy-related uncertainties.
Subject areas and keywords
- Subject: Administration in revenue administration, Economic sectors, Fiscal policy, Public debt, Public sector, Revenue administration
- Keywords: Administration in revenue administration, CR, exchange stabilization agreement, Federal Reserve System's swap network, Global, insurer AXA, ISCR, Mexico's rating, Public sector, staff appraisal, swap line
Content in this bundle
- Country Report