This 2015 Article IV Consultation highlights that the economy of Mexico has continued to grow at a moderate pace, and capital outflow pressures have been limited. The flexible exchange rate has helped the economy adjust to external shocks, while inflation has remained low and stable. Mexico is...

This Selected Issues paper analyzes fiscal multipliers in Mexico. Estimates of fiscal multipliers--obtained from state-level spending--fall within 0.6-0.7 after accounting for dynamic effects. However, the size of multipliers varies with the output gap. The planned fiscal consolidation-under the...