Non-compete and related clauses are relatively common in Mexico. According to employers, between 23% and 39% of private-sector employees are currently bound by a non-compete clause compared to an average of 20% to 30% across the OECD countries covered by the survey. Results from the employee survey confirm a high prevalence: 17% of workers in the private sector (covering both formal or informal ones) report being bound by a non-compete clause, with an additional 19% who believe they “probably” are, compared to an average of 15% and 21% across the OECD countries covered by the survey. The high prevalence of non-compete clauses is particularly concerning given that such clauses are considered generally unenforceable under constitutional law because they infringe individuals’ fundamental right to work.
Mexico Economic Snapshot
The snapshot offers a concise summary of Mexico's economic trends and prospects, including GDP and inflation projections, growth prospects, and structural reform priorities, drawing from the OECD Economic Survey, Economic Outlook, and Foundations for Growth and Competitiveness reports.
Key links
Key findings on non-compete and related clauses for Mexico, July 2026
Non-compete and related clauses are widespread and their use is rising
Economic Outlook: GDP and inflation projections, June 2026
The economy is projected to grow by 0.8% in 2026 and by 1.8% in 2027. Growth will be driven mainly by domestic demand, with private consumption supported by low unemployment. Lower interest rates will gradually support private investment but its recovery will be gradual amid persistent domestic and global policy uncertainty. Public consumption and public investment will remain constrained by ongoing fiscal consolidation. While exports of computer equipment will remain robust, other exports will be weighed down by trade tariffs, slowing growth in the United States and global uncertainty triggered by the evolving Middle East conflict. Inflation is projected to ease gradually to 3.2% in 2027.
Measures to address rising energy prices should become more targeted to the most affected households and SMEs and provide incentives for energy savings. Strengthening revenues and improving the quality of public spending would help safeguard fiscal sustainability and create space for productivity-enhancing public spending. Monetary policy should remain data-dependent, with the policy rate maintained at its current level until there is clear evidence that inflation is on a path back to the 3% target. Raising the share of electricity generated from renewable sources would advance decarbonisation, strengthen energy security, and enhance the country’s attractiveness for investment.
Latest Economic Survey of Mexico (February 2026)
The Mexican economy has been significantly affected by heightened global uncertainty and changes in United States trade policies. Growth has moderated in 2025, with non-automotive exports and private consumption providing the main support. Safeguarding macroeconomic stability and reinvigorating growth, after two decades of modest performance, are critical priorities. Reducing the fiscal deficit through credible measures on both the spending and revenue sides, embedded within a sound medium-term fiscal framework, would help preserve fiscal stability. Channelling additional tax revenues toward productivity-enhancing investments would strengthen growth prospects. Further strengthening efforts to combat crime, a major concern for firms and citizens, is essential to foster investment and growth. Labour informality remains widespread, and boosting skills and facilitating women’s employment through affordable, high-quality early education and care can help reduce informality. Mexico has recently pledged to achieve net-zero emissions by 2050, which will require unlocking its considerable renewable energy potential. Strengthening adaptation is another urgent priority given Mexico’s high vulnerability to climate change. Mexico’s digital transformation offers major opportunities to boost productivity. Realising these opportunities requires addressing persistent challenges, including high concentration in the mobile telecommunications market, low digital adoption among firms, cybersecurity vulnerabilities, and limited digital skills.
SPECIAL FEATURE: Boosting digitalisation
Further reading
Foundations for Growth and Competitiveness, April 2026
Mexico has made no progress in closing the large gap in GDP per capita with the most advanced OECD economies. Productivity has remained stagnant, with significant disparities between highly productive northern states and less productive southern regions. The unemployment rate is at a historically low level. Labour force participation remains below that of advanced OECD economies, particularly for women. Investment picked up from 2021 to 2024, supported by public infrastructure projects in the south.
Improving human capital is essential to reignite productivity. Expanding access to early childhood education and care would enable more women to take up paid jobs and improve education outcomes, thereby supporting both employment and productivity. Reducing informality would raise productivity, lower inequalities and strengthen public finances through higher tax revenues. Addressing infrastructure and logistics gaps would facilitate investment and help reduce regional disparities. Expanding renewable energy generation would support the decarbonisation of the economy while also enhancing the country’s attractiveness to foreign direct investment.
