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Savings, Investment, and Growth in Mexico: Five Years After the Crisis

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  • International Monetary Fund

Abstract

Despite Mexico’s recent remarkable progress in adjusting its fiscal and external accounts and in restructuring its economy, the recovery of growth has remained elusive. This paper reviews some aspects of Mexico’s recent performance and suggests that systemic adjustment uncertainty, and policy conflicts between stabilization and real depreciation objectives, are among the factors that have contributed most to delaying the private sector’s investment response and preventing a sustainable recovery. The paper also assesses future growth prospects and resource mobilization needs, based on a growth model that fully incorporates the internal transfer problem and emphasizes solvency requirements.

Suggested Citation

  • International Monetary Fund, 1989. "Savings, Investment, and Growth in Mexico: Five Years After the Crisis," IMF Working Papers 1989/018, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1989/018
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