The poor performance of the Mexican economy so far this year has been one of the biggest disappointments in Latin America. In this Watch we explain why, in contrast to Brazil, the slowdown owes more to cyclical rather than structural factors, and thus should prove temporary. We expect Mexico’s economy to regain some vigour in the second half of this year and 2014 – helped in part by a major new programme of investment that has recently been unveiled by the government.
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