In 2016 the Mexican manufacturing sector achieved annual growth of 1.3%, as many other sectors of the economy experienced a slowdown. Accounting for 16.8% of GDP, the manufacturing sector is the largest contributor to the national economy. Given the sector’s economic weight, the November 2016 election of US President Donald Trump has created a shadow of uncertainty over the Mexican economy....
Mexico’s energy sector has been undergoing a profound paradigm shift since a reform programme, launched in 2013, put an end to state monopolies in most subsectors and began the process of opening the production and distribution of oil, gas, petrochemicals and electricity to private investment. In parallel, the entire legal, regulatory and institutional framework is being transformed to oversee...
Despite challenges, and as the Mexican insurance sector laboured to meet new reporting standards, signs of strength have been showing in terms of profitability and premium growth. As rising costs were passed on to clients due to the weak exchange rate, some segments – notably health – have seen a rise in premiums. It is expected, however, that regulatory reforms will ultimately limit the...
Mexico’s capital markets are tightly regulated, but this has not greatly hampered innovation, with a number of new financial products becoming available to investors in recent years. The sovereign bond market has been particularly well developed over the past two decades, while corporate bond issuances have also been increasing, particularly among leading parastatal companies, such as the...
For more than two decades Mexico’s banking sector has been characterised by sound regulation, high capital adequacy ratios and strong profitability. Having learned from previous experiences, the Mexican banking sector emerged relatively unscathed from the 2008 global financial crisis. Since then, lending growth and profitability have picked up, despite a relatively sluggish economy, as has the...
From being relatively closed and heavily dependent on oil exports to drive growth and accrue foreign currency, Mexico has progressively liberalised and integrated into regional and global value chains. Although economic openness left Mexico more exposed to the global financial crisis than some of its Latin American peers, its economic profile has since allowed it to bounce back as global trade...
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