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 Mexican economy grew by 4.8% in 2021, after an 8.2% fall the previous year due to the COVID-19 pandemic. Its recovery is underway, albeit slowly: the economy forecast is to grow by 2.1% this year and 2.1% in 2023. Mexico's growth is supported by its trade openness, a strong export manufacturing base connected to global value chains integrated with the United States, and a stable macroeconomic framework. 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: Oct 06, 2022