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Ambitious structural reforms and sound macroeconomic policies have ensured the resilience of the highly-open Mexican economy in the face of challenging global conditions. Mexico's productivity growth has recently picked up in sectors that benefitted from structural reforms - energy, financial, and telecoms. Trade openness, foreign direct investment, integration into global value chains and innovation incentives have boosted exports, notably of autos. Yet other sectors lag behind, suffering from overly stringent local regulations, weak legal institutions, rooted informality, corruption and insufficient financial development. Moreover, growth has not been inclusive enough to achieve better living conditions for all Mexican families, many of whom live in poverty, and whose children's opportunities to do better than their parents could be improved. Past policies have already begun to correct these trends, but more needs to be done. The 2017 Survey makes key policy recommendations that could help to boost productivity and make growth more inclusive.
SPECIAL FEATURES: INCLUSIVE GROWTH; PRODUCTIVITY