{
  "title": "Mexico: Selected Issues",
  "publication": "IMF Staff Country Reports, November 5, 2019",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2019/11/05/mexico-selected-issues-48789",
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  "summary": "This Selected Issues paper shows that upgrading basic public infrastructure, and road infrastructure, raises productivity among firms, not only for large companies but also for Mexico’s large number of small and micro firms.",
  "sections": [
    {
      "heading": "Key findings",
      "content": "- Upgrading basic public infrastructure, and road infrastructure, raises productivity among firms, including small and micro firms.\n- Greater government spending on road infrastructure will support efforts to raise productivity and growth over the medium term.\n- Mexico’s infrastructure quality has been on a steady decline.\n- World Economic Forum indicators of perceived infrastructure quality show Mexico broadly in line with—or even outperforming—its emerging market and regional peers.\n- Infrastructure quality and access are likely to weaken further at current investment rates.\n- Spending trends compare particularly poorly to investment needs in the case of roads investment.\n- According to the Global Competitiveness Index, the perceived quality of Mexico’s transportation infrastructure is broadly in line with peers.\n- The note provides evidence of the role of infrastructure investment in boosting productivity."
    },
    {
      "heading": "Evidence and indicators",
      "content": "- Uses World Economic Forum indicators of perceived infrastructure quality to compare Mexico with emerging market and regional peers.\n- References the Global Competitiveness Index for transportation infrastructure quality comparisons.\n- Presents firm-level productivity effects showing benefits for large firms as well as Mexico’s large number of small and micro firms."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Increase government spending on road infrastructure to support productivity and growth over the medium term.\n- Prioritize investment to prevent further weakening of infrastructure quality and access given current investment rates.\n- Focus spending to address the particularly poor alignment of spending trends with roads investment needs.\n\n---\n\n Content in this bundle\n\n- Mexico: Selected Issues; IMF Country Report No. 19/337; October 17, 2019\n  - Mexico: Selected Issues; IMF Country Report No. 19/337; October 17, 2019 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Mexico: Selected Issues; IMF Country Report No. 19/337; October 17, 2019 (PDF){rel=\"external\" type=\"application/pdf\"}"
    }
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    "[Markdown version](/en/publications/cr/issues/2019/11/05/mexico-selected-issues-48789/index.md)",
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    "Published: November 5, 2019",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781513519043.002",
    "Upgrading basic public infrastructure, and road infrastructure, raises productivity among firms, including small and micro firms.",
    "Greater government spending on road infrastructure will support efforts to raise productivity and growth over the medium term.",
    "Mexico’s infrastructure quality has been on a steady decline.",
    "World Economic Forum indicators of perceived infrastructure quality show Mexico broadly in line with—or even outperforming—its emerging market and regional peers.",
    "Infrastructure quality and access are likely to weaken further at current investment rates.",
    "Spending trends compare particularly poorly to investment needs in the case of roads investment.",
    "According to the Global Competitiveness Index, the perceived quality of Mexico’s transportation infrastructure is broadly in line with peers.",
    "The note provides evidence of the role of infrastructure investment in boosting productivity.",
    "Uses World Economic Forum indicators of perceived infrastructure quality to compare Mexico with emerging market and regional peers.",
    "References the Global Competitiveness Index for transportation infrastructure quality comparisons.",
    "Presents firm-level productivity effects showing benefits for large firms as well as Mexico’s large number of small and micro firms.",
    "Increase government spending on road infrastructure to support productivity and growth over the medium term.",
    "Prioritize investment to prevent further weakening of infrastructure quality and access given current investment rates.",
    "Focus spending to address the particularly poor alignment of spending trends with roads investment needs.",
    "**Mexico: Selected Issues; IMF Country Report No. 19/337; October 17, 2019**"
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