With a population of almost 130 million, a rich cultural history and diversity, and abundant natural resources, Mexico is among the 15 largest economies in the world and the second largest economy in Latin America. The country has strong macroeconomic institutions, and it is open to trade.
Over the last three decades Mexico has underperformed in terms of growth, inclusion, and poverty reduction compared to similar countries. Its economic growth averaged just above 2 percent a year between 1980 and 2018, limiting progress in convergence relative to high income economies.
The economy grew 4.8 percent in 2021 after contracting by 8.2 percent in 2020. Supported by increased mobility and U.S. demand, the services and manufacturing sectors posted solid performances during the first half of 2021. However, the recovery lost momentum during the second half of 2021 because of supply chain shortages, a rise in COVID-19 cases, and depressed investment. To enable a better and sustained recovery over the medium term, the country will also need to deal with some of the most pressing pre-crisis challenges to growth and inclusion.
Last Updated: Apr 07, 2022