The Mexican economy expanded 2.1% in 2017 driven by robust exports and solid household consumption. Growth is expected to range between 2% to 3% over the next five years. Construction activity will likely pick up from its historically low levels, reflecting reconstruction after the September 2017 earthquakes. Recent structural reforms are expected to boost private investment adding further upside to the outlook. But growing US protectionism and anti-Mexican rhetoric from the Trump administration remains the largest risk.
Mexico’s GDP per capital reached US$9,250 in 2017, and should approach US$12,000 by 2022. But it still lags behind regional heavy weights, Brazil and Argentina.