Mexico at the Time of Reforms

In 2013, Mexico implemented a comprehensive set of structural reforms aimed at removing the obstacles hindering the economy to renew with growth, in fields as diverse as education, public finance, financial sector, energy and telecommunication. It became therefore one of the few countries to have succeeded in voting such a large number of structural reforms in such a short period of time and accompanied by a broad political support. The reduction of monopolies and oligopolistic organizations that generated inefficiencies and the increase in low-cost access to credit for households and businesses could lead to a rise in Mexico's potential growth by almost one percentage point. If some of the reforms begin to show their effectiveness, the global positive effects on growth are taking time to appear. This delay is especially long given that reforms did not deal with several roots of the fragility of the Mexican growth model. Paradoxically, the Mexican economy shows strong and sound macroeconomic fundamentals, resilience, and great trade openness but remains poorly inclusive, largely informal with endemic corruption and generates strong geographical and income inequalities.