Mexico's economic activity is expected to pick up in near future, supported by domestic demand. The consumption in the Mexican economy is also expected to strengthen due to robust remittances, lower inflation and higher social transfers. The government's announced infrastructure investment plans will also add to growth, but restraints on current spending is expected to partly offset these effects.
Policy uncertainty will continue to restrain private investment. The decline in oil activity will remain a drag on growth. Policy uncertainty, rising protectionism and the non-ratification of the trade agreement with the United States and Canada (USMCA) remain negative risks to the future outlook for Mexican economy, as they would dent exports and damp investment even further. On the other hand, more policy certainty, an improvement in the rule of law and competition, and a reduction in violence would support the business environment and lift well-being.
Mexico, officially the United Mexican States, is a federal republic in North America. Mexico is the second largest economy in Latin America. The World Bank Group engagement with the country is structured around a model that provides development solutions adapted to the country, with an integral package of financial, knowledge and convening services.
Mexico had estimated population of 125.929 million in the year 2019 and expected to reach 131.529 million by 2024. Mexico’s unemployment rate was expected to be 3.485% of total labor force.
Mexico’s real gross domestic product (GDP) was expected to be MXN 18820.31 billion in 2019 whereas the nominal GDP was expected to be MXN 24751.43 billion. This will result in GDP deflator 131.514. Per capita GDP was estimated to be at USD 9858.30 whereas purchasing power parity (PPP) based per capita GDP was estimated to be at USD 21107.38.
In 2019, Mexico government’s revenue was expected to be MXN 5411.61 billion whereas the expenditure is expected to be MXN 6030.39 billion. This will result Mexican government’s net lending / borrowing negative expected to be at MXN 618.786 billion in 2019 indicating that enough financial resources will not be made available by the government to boost economic growth.
The current account balance for Mexico is estimated to be negative at USD 21.092 billion for the year 2019 and is expected to decline at a CAGR of 6.09% and reach USD 29.339 by 2024. This negative current account balance indicates that Mexico will be a net borrower from the whole world.
In World Bank’s ease of doing business ranking Mexico was ranked 54 out of 190 countries in 2018. Mexico’s ease of doing business ranking decreased from 49th position in 2017.
*If Applicable.