Concluding remarks Mexico has seen an incipient economic upturn this year, driven by stronger external demand and higher domestic spending. The panorama is favorable given more consistent U.S. economic performance and Mexican structural reforms in the first stages of implementation. Mexico’s economy has benefited from the continuation of portfolio capital inflows amid benign financial conditions, notwithstanding some recent volatility.
In addition, and crucial for the medium term, two factors support the view that wage developments are less of a risk than was previously the case. First, the slowdown in economic activity should contribute to containing inflationary pressure stemming from the labour market.