Growth has been driven mainly by demographics
Exports to the US are driving total export growth
Remittances have been increasing
Growth has not been strong enough to allow for convergence to higher living standards
Poverty rates are still high but differ greatly across states
Inequality is high
Female labour market participation is low
Security is low, hurting women in particular
Well-being varies greatly across states
Without policy reforms, Mexico’s convergence to higher living standards will be limited
The Mexican economy benefits from strong economic fundamentals
External debt has declined and foreign exchange reserves are adequate
Investment and oil production are weighing on the economy
Unemployment is low but informality remains elevated
Real wages are recovering
Investment is low
Headline inflation is still above target
Inflation expectations
The monetary policy stance is tight
Selected banking sector indicators
Financial inclusion remains low
Bank branches are unevenly distributed
Mexican SMEs face high borrowing costs
Competition in the banking sector is low
Fiscal performance has improved
Public sector debt has been contained
Current policies are consistent with stable debt
The tax and transfer system does little to reduce income inequality
There is room to increase revenues and the progressivity of PIT
The VAT revenue ratio is the lowest among OECD countries
The tax administration needs to be strengthened
Social spending has increased but remains low
The quality of Mexico’s institutions is low
Perceived corruption continues to be a substantial problem
The high levels of crime and violence continue to grow
Mexico is behind most other OECD countries on the ease of doing business
There is a large potential for policy reforms to raise living standards
Green growth indicators for Mexico
Small particle emissions in Mexico City are still high