Possible fragilities to watch for and correct preemptively include rapidly rising external debt and foreign currency mismatches, as well as domestic asset price bubbles. All in all, the best strategy is to strengthen macroeconomic foundations, fortify the financial system through better regulation and oversight, and promote reforms that enhance economic efficiency and hence potential growth.
The Mexican economy During recent years, Mexico has been an important recipient of foreign portfolio funds among emerging economies. The country has also fared relatively well in the current less favorable external financial environment. In particular, since May 2013, the Mexican peso has depreciated less than many other emerging-market currencies.