Mexico Plans For Higher Growth

Mexico’s National Development Plan (PND) for the sexenio, which aims to raise growth to 5.0% from 3.5%, is realistic, according to Goldman Sachs. “The policy proposals are sensible, making the PND realistic, particularly given the first signs of a capable administration which is willing and able to work across all political forces to achieve their objectives,” says the shop, adding that it sets “optimistic but yet feasible targets for the administration”. The PND message is that Mexico is stuck in a 3.5% growth rut owing to insufficient reforms and lack of investments and growth in productivity and competitiveness. “Based on a comprehensive approach consisting of prioritizing investments, implementing structural reforms, improvements in education, development of infrastructure, anti-trust policies and increase competition, and the rule of law, the Calderon administration aims at raising the bar to 5.0% by the end of the sexenio, which is a target that we deem to be realistic,” says Goldman.