The Mexican economy expanded 2.2% in 2018 driven by robust exports, solid household consumption stronger services sector growth. Growth is expected to range between 2% to 3% over the next five years. Low unemployment, strong remittances and recovering real wages will support household spending. Investment will be supported by greater public investment. Recent structural reforms are expected to boost private investment, adding further upside to the outlook. Growing US protectionism from the Trump Administration remains the largest risk.
Mexico’s GDP per capital reached US$9,600 in 2018, and should approach US$12,000 by 2022. But it still lags behind regional heavy weights, Brazil and Argentina.