Thanks to past improvements in the macroeconomic policy framework and financial supervision, Mexico weathered the global recession of 2008-09 without fiscal or financial crises – a major improvement compared to previous episodes. The economic recovery has so far unfolded at a robust pace. Nevertheless, the recession was deep. There is thus a need for Mexico to continue preparing itself to confront future shocks through macroeconomic and structural policy measures. Oil revenues, which account for around one third of budgetary receipts, are highly volatile, especially due to price movements, and the prospects for production are uncertain, even though less so than in previous years. Reforms to have stronger fiscal buffers, increase non-oil tax revenues and enhance the efficiency of government spending are therefore important. Mexico’s weak potential growth performance and slow convergence towards average OECD living standards highlight the need for structural reforms to raise productivity, especially in a context where Mexico faces pressures due to the integration of other economies with labour-intensive factor endowments into the world economy. Structural reforms should address macroeconomic volatility, limited competition in a number of sectors and remaining weaknesses within the education system.