{ "title": "Mexico's Outlook in 5 Charts", "publication": "IMF News, November 20, 2017", "sourceUrl": "https://www.imf.org/en/news/articles/2017/11/20/na112017-mexicos-outlook-in-5-charts", "canonical": "https://www.imf.org/en/news/articles/2017/11/20/na112017-mexicos-outlook-in-5-charts", "overlayPath": "/en/news/articles/2017/11/20/na112017-mexicos-outlook-in-5-charts/index.md", "summary": "

The Mexican economy keeps growing, thanks to strong economic policies, even as the fate of the country’s trade deal with North America remains unclear. Yet, Mexico would still benefit from reforms for stronger and more inclusive growth.

", "publishDate": "2017-11-20", "sections": [ { "heading": "Overview", "content": "- The Mexican economy keeps growing, mainly thanks to its strong economic policies, even as the fate of the country’s trade deal with North America remains unclear.\n- Mexico would still benefit from carrying out reforms for stronger and more inclusive growth.\n- Main areas to tackle: inequality, corruption, obstacles holding back firms’ productivity, and tax collection to allow more room for public investment." }, { "heading": "Near-term growth outlook", "content": "- The IMF has revised down slightly the near-term growth forecast for the Mexican economy compared to the 2016 projections.\n- Mexico’s growth outlook: 2.1 percent for 2017 and 1.9 percent for 2018.\n- Revision reflects uncertainty related to the renegotiation of the North American Free Trade Agreement (NAFTA)." }, { "heading": "Tax collection and public investment", "content": "- Mexico stands out among its peers in Latin America and the Organization for Economic Co-operation and Development (OECD) with its low share of tax revenues.\n- Low tax collection constrains public spending and has led to neglected public infrastructure.\n- Policy priorities:\n - Improve tax collection.\n - Close tax avoidance loopholes.\n - Make public spending more efficient.\n- Expected outcome: more room to invest in public infrastructure." }, { "heading": "Poverty and inequality", "content": "- Poverty affects more than 40 percent of Mexico’s population.\n- Inequality, measured by the Gini coefficient, remains close to 0.5 (a Gini of 0 represents perfect equality), versus 0.3 on average in OECD member countries." }, { "heading": "Rule of law and corruption", "content": "- Strengthening the rule of law and fighting corruption should be a priority for Mexico.\n- Combating corruption would increase productivity by:\n - Fostering investment in the most productive firms.\n - Reducing rent-seeking behavior.\n- Recommendation: Swift implementation of all elements of national and state level anti-corruption plans to help lift potential growth." }, { "heading": "Informality and access to services", "content": "- Informality is high, and access to services such as electricity and financial products remains uneven.\n- Policy recommendation: Doubling down on the Pacto por Mexico (a reform agreement endorsed by the major Mexican political parties in 2012) would especially benefit southern states and help boost productivity.\n\nSource: Mexico's Outlook in 5 Charts, IMF News, November 20, 2017.\n\n---\n\n\n References\n\n- https://www.imf.org/en/News/country-focus\n- PRESS CENTER\n- IMF Country Focus\n- Read the report\n- Mexico and the IMF\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2017/11/20/na112017-mexicos-outlook-in-5-charts" } ], "bullets": [ "[Markdown version](/en/news/articles/2017/11/20/na112017-mexicos-outlook-in-5-charts/index.md)", "[Structured JSON version](/en/news/articles/2017/11/20/na112017-mexicos-outlook-in-5-charts/index.json)", "[Bundle manifest](/en/news/articles/2017/11/20/na112017-mexicos-outlook-in-5-charts/bundle-manifest.json)", "Published: November 20, 2017", "The Mexican economy keeps growing, mainly thanks to its strong economic policies, even as the fate of the country’s trade deal with North America remains unclear.", "Mexico would still benefit from carrying out reforms for stronger and more inclusive growth.", "Main areas to tackle: inequality, corruption, obstacles holding back firms’ productivity, and tax collection to allow more room for public investment.", "The IMF has revised down slightly the near-term growth forecast for the Mexican economy compared to the 2016 projections.", "Mexico’s growth outlook: 2.1 percent for 2017 and 1.9 percent for 2018.", "Revision reflects uncertainty related to the renegotiation of the North American Free Trade Agreement (NAFTA).", "Mexico stands out among its peers in Latin America and the Organization for Economic Co-operation and Development (OECD) with its low share of tax revenues.", "Low tax collection constrains public spending and has led to neglected public infrastructure.", "Policy priorities:", "Expected outcome: more room to invest in public infrastructure.", "Poverty affects more than 40 percent of Mexico’s population.", "Inequality, measured by the Gini coefficient, remains close to 0.5 (a Gini of 0 represents perfect equality), versus 0.3 on average in OECD member countries.", "Strengthening the rule of law and fighting corruption should be a priority for Mexico.", "Combating corruption would increase productivity by:", "Recommendation: Swift implementation of all elements of national and state level anti-corruption plans to help lift potential growth.", "Informality is high, and access to services such as electricity and financial products remains uneven.", "Policy recommendation: Doubling down on the Pacto por Mexico (a reform agreement endorsed by the major Mexican political parties in 2012) would especially benefit southern states and help boost productivity.", "[https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)", "[PRESS CENTER](http://presscenter.imf.org/)", "[IMF Country Focus](https://www.imf.org/en/news/country-focus)", "[Read the report](https://www.imf.org/en/news/articles/2017/11/20/%E2%80%9Dhttp://www.imf.org/en/Publications/CR/Issues/2017/11/10/Mexico-2017-Article-IV-Consultation-Press-Release-and-Staff-Report-45398%E2%80%9D)", "[Mexico and the IMF](https://www.imf.org/en/news/articles/2017/11/20/%E2%80%9Dhttp://www.imf.org/en/Countries/MEX%E2%80%9D)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2017/11/20/na112017-mexicos-outlook-in-5-charts/index.md", "json": "/en/news/articles/2017/11/20/na112017-mexicos-outlook-in-5-charts/index.json", "bundleManifest": "/en/news/articles/2017/11/20/na112017-mexicos-outlook-in-5-charts/bundle-manifest.json" }, "generatedAtUtc": "2026-09-25T21:22:37.188Z" }