A tale of two Mexicos: Growth and prosperity in a two-speed economy

March 2014

Mexico is once again on the minds of global investors and business leaders, who regard it as a prime location for reaching the US market and as an emerging market with particularly promising growth prospects. Mexico is also undertaking a series of reforms that have been well received abroad. To inform future decision making, this report examines why, for all its endowments and great potential, Mexico has struggled for three decades to raise growth rates. Despite a series of market-opening reforms, including the North American Free Trade Agreement that created a single market with the United States and Canada, Mexico?s GDP growth has fallen behind that of other developing nations, both in Asia and in Latin America. As a result, GDP per capita and improvements in living standards have stagnated.

Keywords: Market, Economy, Americas, Mexico, GDP, Growth, Investment, Productivity, Energy

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A tale of two Mexicos: Growth and prosperity in a two-speed economy

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