Growth disparities across Mexican states are increasing
Total factor productivity is recovering
Income inequality is high and female labour force participation is lagging
Reforms are expected to yield large impacts
The economy is resilient
A recession is unlikely in the short term
Oil dependence in Mexico
Monetary policy has successfully anchored inflation expectations
The government expects to return to primary surplus and put the debt-to-GDP on a downward path
Some well-being indicators are low compared to OECD peers
With low social spending, poverty and income disparities remain high
Disparities across Mexico
Mexico's tax structure should be more diversified
Mexico's VAT, as a share of tax revenues, is in line with OECD but lags behind peer countries, 2014
Increase spending while ensuring fiscal sustainability
Education quality remains lacking in Mexico and regional differences persist
Lack of skills is a major constraint on firms' operations
Female labour force participation in Mexico has increased but leadership gaps remain
Gender gaps in financial inclusion are large
Multi-factor productivity diverges across sectors
Employment and productivity changes in the agriculture sector during catching-up episodes among selected OECD countries
Mexico's import content of exports (ICE) in selected manufacturing sectors has declined
Ample scope to reduce foreign investment and trade barriers
Mexico is the poorest performer for safety and corruption across OECD countries
Green growth indicators in Mexico
Financial inclusion is a key enabler of economic growth and poverty reduction
Financial inclusion in Mexico remains the lowest amongst OECD countries
Financial access points are still low in many municipalities
Use of financial services and access points has slightly improved
The use of formal credit is low
Women entrepreneurs' share in the informal sector is large while the share of women employers is significantly lower
Paid leave entitlements should be more gender equitable
ESG scores of Mexican firms are lower than other Latin American countries
Differences between sectors are large
Productivity is picking up in some parts of the economy
Mexico's backward and forward participation in GVCs, 2011
Backward GVC participation ratio: relative contribution of policy and non-policy factors
The impact on GVC integration of other policies
Mexico's participation in GVCs, share of intermediates in total trade of manufactured goods and export penetration into the US economy
Mexico's exports are evolving
Light vehicles production and installed capacity
Auto sector performance
Mexico's backward and forward participation to GVCs in selected sectors vs peer OECD countries (2011)
Projected 2014 backward GVC integration in manufacturing industries (ICE)
Sectorial complexity measures vs backward participation in GVCs (ICE)
Backward GVC participation and labour productivity vs revealed comparative advantage (RCA)
Mexico's Knowledge Economy Index (KEI) is the lowest among OECD countries
FDI flows and stocks
FDI, backward integration to GVCs and labour productivity
Research and development (R&D) expenditure
Sectors spending more in R&D are more integrated in GVCs and enjoy higher labour productivity
Intellectual property activity
ISO certified industries are more backward integrated in GVCs
Sectors with higher educated workers are more productive and more integrated in GVCs
Mexico's share of engineering graduates is high but lags behind in tertiary and vocational
High sectoral concentration is an issue in the south
Entry barriers vary widely across localities
Contribution of SMEs to GVCs in Mexico
Informality and productivity by firm size
Aggregate TFP growth and firm-level dispersion
Vulnerability to demand shocks in GVCs, by economy