The Latest: Mexico’s finance ministry has rejected the Federal de Telecommunicaciones' (IFT) proposal to reduce spectrum costs for the sixth time. The IFT has stated that the spectrum cost in Mexico is 186% higher than the international average and higher than its counterparts in Europe. 

Implications: The heightened costs will undoubtedly

Key View

• We forecast that Mexico’s current account deficit will widen marginally from 1.3% of GDP in 2022 to 1.5% this year, where we anticipate it will hold in 2024.
• Data for H123 were better than expected, but we anticipate that the peso’s significant appreciation, solid domestic growth and a weaker external demand backdrop will result in a

Key View

• We have nudged up our forecast for Mexican real GDP growth in 2023 from 3.0% to 3.2%, while simultaneously lowering our projection for 2024 by the same magnitude from 1.6% to 1.4%.
• Growth averaged 3.8% on an annualised basis in H123, supported by strength in domestic demand. High frequency data suggest this momentum was sustained

In this piece, we answer some frequently asked questions about the impact of ‘nearshoring’ on the Mexican economy. Nearshoring is a process which has and is expected to continue to see multinationals shift production facilities closer to target markets in response to: 1) a renewed focus on supply chain security following the pandemic and 2)

Key View

• Cofepris will continue to promote domestic production of biotechnological and biosimilar medicines in Mexico.
• Mexico’s government will continue to engage in cross-border collaborations to support the regional supply chain improvements.
• However, we expect drug shortages to persist in Mexico in the near-term.

Cofepris will continue

Key View

• We hold a positive outlook for consumer spending on clothing and footwear in Mexico. The consumer market offers an attractive demographic profile, due to its large and young urbanised population, as well as consumer's high levels of disposable incomes. In the short term (2023), high inflationary pressures will be the key risk to