IMF Staff Country Reports

The 2023 Article IV Consultation highlights that the Mexican economy is in the midst of a broad-based expansion. Growth is expected to be 3.2 percent in 2023, led by robust private consumption and investment, with notable strength in services and construction sector, and in auto production. Economic activity is expected to moderate in the second half of 2023 and in 2024, reflecting the lack of economic slack, weaker US growth, and tight monetary policy. Risks are balanced. While an abrupt global slowdown provides downside risks, the diversification of global supply chains could catalyze growth, boost investment, and increase employment opportunities. A more resilient than expected US economy also represents an upside risk. The report recommends supply-side policies to facilitate female labor participation, tackle crime and corruption, improve access to finance, reduce the costs of formalization, remove regulatory hurdles, expand renewable energy supply, and promote competition would enable Mexico to capitalize on the potential gains from new opportunities.