Mexico needs a “comprehensive reform agenda” to boost investment and economic growth, the Organization for Economic Cooperation and Development (OECD) said.
The OECD Economic Survey of Mexico noted that more robust economic growth and more jobs, combined with increased social spending, would help reduce poverty and improve social cohesion, reports Xinhua news agency.
“Mexico has great potential to become a high-growth economy, with higher living standards for all,” said OECD Secretary-General Mathias Cormann when presenting the study during a virtual event.
“An ambitious and comprehensive reform agenda will be needed to turn this opportunity into reality,” added the head of the OECD at the event, which Mexican Finance Minister Rogelio Ramirez de la O also attended.
The OECD said that Mexico should prioritize reactivating private investment and reversing low productivity to improve growth potential in the medium term.
According to the OECD, the country needs to improve business regulations, boost competition, reduce informality and corruption, and step up efforts to meet greenhouse gas emission targets.
In his speech, the Finance Minister said the government has launched a comprehensive strategy that ensures greater economic development while prioritising social demands.
According to the Minister, the initiative seeks more significant investment in infrastructure projects, the creation of a universal welfare network and the consolidation of public finances.
The OECD estimated that Mexico’s economy would grow 2.3 per cent in 2022 and 2.6 per cent next year.
According to preliminary figures, the Mexican economy, the second-largest in Latin America after Brazil, grew by 4.8 per cent in 2021, after plunging 8.2 per cent in 2020 due to the Covid-19 pandemic.