GDP of Mexico in 2023 - Expenditure Approach, Sector Output, and Regional GDP

The economic growth in Mexico is expected to be weak throughout the coming few years. This is due to the incomplete recovery from the Covid-19 pandemic, external challenges in the short term, and long-term structural limitations. Real GDP growth is expected to slow down to 1.7% in 2023 from an estimated 3.5% in 2022. The short-term outlook is pessimistic due to a lack of fiscal support for consumers and businesses, strong inflationary pressures, monetary policy tightening, the impending technical recession in the US, and the effects of the Russia-Ukraine war on global supply chains. In the medium term, weak public investment and high poverty levels are expected to limit growth to an average of 2% per year in years after 2023. President López Obrador’s rollback of structural reforms in education and energy on ideological grounds is expected to harm medium and long-term growth. Refor...