2007 OECD Economic Surveys: Mexico 2007

image of OECD Economic Surveys: Mexico 2007

This edition of OECD's periodic economic survey of Mexico examines key challenges Mexico faces in the medium-term including strengthening public finances, maximising the gains from integration into the world economy, improving infrastructure (including transport, telecommunications, electricity, and natural gas), and creating more and better jobs to alleviate poverty.

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Economic performance and key challenges

Past reforms to liberalise the economy have paid off. Mexico’s GDP per capita has increased and broad macroeconomic stability has been achieved. Although its fiscal GDP position is good, Mexico has to reduce the heavy reliance of the budget on oil revenue. Furthermore, living standards remain well below those in other OECD countries, and current GDP growth is still not high enough to ensure rapid convergence. Mexico needs to introduce further structural reforms to lift per capita GDP growth, raise living standards and reduce poverty faster. This chapter identifies four key challenges that Mexico faces in achieving these goals: i) strengthening public finances; ii) making the most from integration in the world economy; iii) improving infrastructure through greater competition and better regulation; and iv) fostering the creation of more and better jobs and fighting poverty.

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