The looming downturn in the US next year means that Mexican growth will slow in the run-up to July’s presidential elections. The task of raising economic performance therefore looks set to dominate the pre-election debate and, in an environment of weak global demand, policymakers will have to focus on the domestic drivers of growth. While looser macroeconomic policy may give a short-term boost, supply-side reforms are needed to raise growth over the medium-term.
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