2022 OECD Economic Surveys: Mexico 2022

image of OECD Economic Surveys: Mexico 2022

Mexico is recovering from a pandemic that had deep economic and social impacts. Informal workers, women and youth were particularly hit, exacerbating long-standing social challenges. Mexico’s solid macroeconomic policy framework safeguarded macroeconomic stability. But medium term growth prospects have weakened and growth over the past two decades has been low. Poverty rates and regional inequalities remain high. Informality, financial exclusion or corruption have hindered productivity growth. Low female participation rates and weak investment since 2015 have also impacted medium-term growth prospects. Maintaining and strengthening Mexico’s solid macroeconomic policy framework is key for stability. The ability of fiscal policy to smooth out economic cycles and support growth during recessions can be enhanced, creating more space for public investment. Rebooting private investment and turning around low productivity growth are fundamental priorities. This will require comprehensive reforms to improve business regulations, boost competition, reduce informality and corruption and transition towards carbon neutrality. Widening access to finance and strengthening digitalization would provide more equal opportunities and help to boost growth.


English Also available in: French, Spanish

Key Policy Insights

The economy is recovering from the pandemic-induced recession. Manufacturing and exports are above pre-pandemic levels and services are strengthening. Informal workers, women and youth were particularly hit, widening long-standing inequalities. Mexico’s large potential to be a high-growth economy remains unrealised and growth over the last decades has been low. The updated trade agreement in North America can give fresh impetus to growth. Still, a comprehensive reform agenda to reboot investment and turn around productivity is needed. Stepping efforts to transition towards carbon neutrality would also help Mexico to seize new opportunities and address climate change.

English Also available in: Spanish

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error