Country risk in Mexico is low to moderate and has an OECD country risk rating of 3. This indicates a relatively low to moderate likelihood that Mexico will be unable and/or unwilling to meet its external debt obligations—though, needless to say, individual private and sub-sovereign debtors can and do default). Mexico has a large dependence on the American economy, and history suggests that economic struggles in America get magnified in Mexico (2008 GFC). Mexico currently experiences frequent corruption, high illicit drug trade and high levels of violence.
Mexico is ranked 49 out of a possible 190 economies on the World Bank’s ease of doing business scorecard. Mexico outperforms most of Latin America and the Caribbean in all categories though getting electricity is slightly harder in Mexico.
The risk of expropriation in Mexico is low.
Political risk in Mexico is low. But Mexico’s governance indicators relative to the regional average are mixed. Regulatory quality and government effectiveness are the only two categories where Mexico ranks above the regional average. Political stability/absence of violence and control of corruption are notably below the Latin American/Caribbean average.