Mexico: Selected Issues

International Monetary Fund

No 2012/317, IMF Staff Country Reports from International Monetary Fund

Abstract: Mexico is an open economy with strong real and financial links to the rest of the world with risks of spillovers from global turbulence. Recent gains in market share in the U.S. manufacturing market are owed to improved relative unit labor costs and reemergence of a location advantage. Mexico’s current fiscal framework requires measures to offset the emerging challenges of a decline in oil revenues and the projected increase in health- and pensions-related spending. The sustained increase of bank credit after the global crisis has been reversed. The effects of migration depend on labor reform.

Keywords: ISCR; CR; Mexico; migration flow; financing; migration; bank financing; banking sector credit; financing level; market financing; unemployment in Mexico; Income and capital gains taxes; Manufacturing; Bank credit; Tax expenditures; Global; Europe (search for similar items in EconPapers)
Pages: 63
Date: 2012-11-28
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