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Transportation infrastructure in Mexico: The Next Structural Reform

During the last two decades, Mexico has enjoyed macroeconomic stability, a growing and strong peso-debt market, an open and competitive market for developers and construction companies and three governments with clear infrastructure commitments and professional teams to develop toll roads, railroads, airports and ports. Despite those favourable conditions, the country lags behind many other countries in the development of infrastructure. So what challenges does Mexico face in trying to accelerate development?

Both corruption and insecurity have to a certain extent impaired Mexico’s development. Recent geopolitical and economic events threaten to affect this period of stability that the country has enjoyed. Mexico, today, faces a serious challenge. Any adverse effect on Mexico’s international trade and foreign investments could seriously cripple the Mexican economy. If any of these adverse changes occurs (especially in regard to the Mexican trade relationship with the U.S), Mexico would need to become substantially more competitive in order to sustain economic growth. However, the institutional, legislative and regulatory regime governing transportation infrastructure projects and logistics has discouraged its development in those areas.

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