OECD recommendations

Productivity growth was negative in the years after the global economic crisis but has picked up recently following a number of key macroeconomic and structural reforms. Energy and telecommunications markets are now more open to competition. Mexico has also improved the quality of pro-growth institutions. A Productivity Commission has been created and the role of the competition authority has been strengthened.   It is essential to proceed with the full implementation of planned reforms. Focusing on improving education outcomes, lowering barriers to FDI and strengthening innovation policies are needed to boost labour productivity and reduce inequalities. A renewed push to boost anti-corruption efforts and to fight informality will help to make growth more inclusive.

  • Raise educational achievement by proceeding with the planned reforms on revamping teacher training programmes and introduce merit-based organisational schemes, as a way to improve the quality of education. Improve both equity and efficiency by refocusing spending on pre-primary, primary and secondary education.
  • Strengthen the rule of law. Pursue the transition from written to oral trials to improve the outcomes of economic disputes, such as those related to contract enforcement. Complete the setup of anti-corruption systems at the state level, in particular to improve the consistency with which regulations are applied. Enact and implement a second wave of legal reform to civil and commercial justice.
  • Continue to lift FDI restrictions in key sectors, such as transportation and banking. Improve the business climate to attract FDI in services, in part by enhancing the transparency of regulatory policies.
  • Strengthen innovation policies by promoting early-stage financing. Enhance industry co-operation with research institutes by strengthening industry networks, particularly through the facilitation of clusters. Create public programmes promoting innovation in local firms and linkages with foreign affiliates.
  • Facilitate and support firm entry by easing entry regulations in professional services and licensing requirements in retail trade to foster formal employment. Evaluate efficiency in firm registration procedures at the local level with a view to reduce costs to entry firms. 



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Productivity - MexicoSource: OECD May 2017 Economic Outlook database. 

 Key publications

Boosting Growth and Reducing Informality in Mexico, OECD Economics Department Working Paper, No. 1188, March 2015.

A Mandate for Mexico, The Wilson Center, 2015.

A Tale of Two Mexicos, McKinsey Global Institute, 2014. 

Institutions icon Productivity - enhancing institutions

Mexico's National Productivity Commission


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