Hong Kong Trade Development Council Publishes Fact Sheet on Mexico

Mexico is the second-largest economy in Latin America and has a free market economy in the trillion United States dollar class that consists of highly diversified and modern industries, with significant amounts of private investment. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution and airports, among others. While trade growth remains strong, emerging risks stemming from global trade protectionism and the slower pace of internal reforms may impact investment. Significant tightening of fiscal and monetary policy in recent years has also weighed on domestic demand. Private consumption, however, has withstood the fall in real wages associated with an inflationary spike in 2017. The implementation of energy reforms has been successful in attracting private participation to the sector, and the downward trend in investment and production in the oil sector is expected to be reversed, boosting potential output growth.

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