Assessment and Recommendations
I. Recent Developments and Prospects in Mexico
-Recovery in output, rising employment, and disinflation
-Favorable export performance and improving external balance
-Conditions favor sustained growth
II. Monetary and Fiscal Policies
-Monetary policy
-Fiscal policy
-Setting economic policy in a medium-term framework
III. Public Spending: How to Enhance its Effectiveness
-Introduction
-Characteristics and determinants of public spending
-Factors affecting future public spending
-Issues in public management and budget
-Assessment and agenda for further reform
IV. Structural reform for better balanced growth
-Mexico's longer-term performance
-Strengthening the banking sector
-Enhancing product-market competition
-Creating a favorable environment for business
-Addressing social safety net issues
-Tax reform
Annex I. Background Tables to Chapter III.
Annex II. Poverty Alleviation Programs
Annex III. The Budget Reform System
Annex IV. Performance Evaluation Systems and Incentive Schemes for Public Sector Employees
Annex V. The Use of Market-Based Mechanisms to Improve the Efficiency of Public Spending
VI. The Financial Rescue Package
VII. Calendar of Main Economic Events