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Growth is set to pick up, underpinned by private consumption and exports. Uncertainty will continue to restrain private investment, although earthquake-related reconstruction activities are expected to take place in 2018. However, private investment could accelerate if the NAFTA negotiations end favourably. Public investment will remain subdued. Unemployment is projected to remain at historic low levels. Inflation will continue to decline from its high level to closer to the central bank’s target.
Structural reforms have already visible effects but challenges persist, including high levels of violence and corruption, poverty, inequality, informality and slow productivity growth. Reaping the full benefits of structural reforms will require keeping the momentum for successful implementation nationwide, complemented by a new wave of reforms to strengthen the rule of law and improve institutional quality.
Economic Survey of Mexico (survey page)