Growth will pick up gradually, as robust remittances, increases in minimum wages and declining inflation will boost consumption. Investment has been weak but will gradually strengthen on the back of lower interest rates.
In the recent years, Mexico has adopted a number of structural reforms to boost productivity growth. Full and efficient implementation and follow-up will be crucial to bear the full benefits of these past reforms.
Moderate growth is underpinned by a strong macroeconomic framework. Commitment to fiscal targets, sound debt management, a flexible exchange rate and an appropriate monetary policy stance have supported moderate growth in spite of several headwinds in recent years.