Policy will be the key to success

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MEDIUM RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Updated in January 2024.

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GDP USD1414.18bn (World ranking 14, World Bank 2022)
Population 127.05mn (World ranking 10, World Bank 2022)
Form of state Federal Republic
Head of government Andrés Manuel Lopez Obrador (President)
Next elections 2024, General Election
  • Sound macro-policy framework: fiscal spending is capped and proactive inflation-targeting central bank
  • Moderate debt ratios and strong external position (manageable current account deficit, large FX reserves)
  • Strong legacy of pro-business reforms in the last decade
  • Structural business environment exceeds Latin American average
  • Durable political framework with stable handovers of power
  • Member of OECD
  • Easy access to capital markets
  • Support from IFIs likely if needed
  • Financial integration means market volatility is driven by both domestic (more or less pro-business stance) and external (US) policy risk. Trade uncertainty dissipated but doubts over the implementation of NAFTA remain
  • Fiscal position highly sensitive to oil price (oil = 30% of public revenues)
  • Sensitive to US business cycle (around 80% of exports)
  • Skewed income distribution (geographically as well as among socio-economic groups), still high poverty levels
  • Security issues related to drug-trafficking
  • Rule of law and control of corruption below Latin America’s average

Trade structure by destination/origin

(% of total, 2022)

Exports Rank Imports
United States 78.3%
1
43.9% United States
Canada 2.7%
2
19.6% China
China 1.9%
3
3.7% Korea, Republic of
Germany 1.4%
4
3.1% Germany
Taiwan 1.3%
5
3.0% Japan

Trade structure by product

(% of total, 2022)

Exports Rank Imports
Road vehicles 21.3%
1
9.5% Electrical machinery, apparatus and appliances, n.e.s.
Electrical machinery, apparatus and appliances, n.e.s. 10.2%
2
7.6% Road vehicles
Office machines and automatic data processing machines 8.0%
3
7.1% Petroleum, petroleum products and related materials
Petroleum, petroleum products and related materials 6.5%
4
7.0% Telecommunication and sound recording apparatus
Telecommunication and sound recording apparatus 5.9%
5
5.5% Other industrial machinery and parts