The Future of the Mexican Economy

In this article, the author reflects on the positive effects the North American Free Trade Agreement (NAFTA) has had on Mexico, the current situation of the Mexican economy and its outlook for the future. Mexico, he says, has witnessed a trade boom as a result of NAFTA, and now competes with the exporting success of the Chinese economy in the region. Gómez Alcalá underlines the progress achieved by both nations and the points where they differ, concluding that the idea Mexico has lost some of its markets to China needs to be qualified. He then presents case studies to illustrate his point. Mexico, he says, has taken certain steps to complement the advantages afforded by NAFTA, especially as regards the handling of its macro-economy and North American integration. Special attention is devoted to the issue of competitiveness, which the author ties in with the structural reforms the country is lacking. Finally, he analyzes Mexico’s economic growth prospects for 2004, which have improved recently, due to the favorable response of international financial markets and an increase in exports to the United States.