Author/Editor:

International Monetary Fund. Western Hemisphere Dept.

Publication Date:

October 6, 2017

Electronic Access:

Free Full Text (PDF file size is 2155 KB).Use the free Adobe Acrobat Reader to view this PDF file

Summary:

A prolonged period of stagnation has resulted in declining income relative to neighboring countries, concerns about fiscal sustainability, and a severe household debt overhang problem. Elevated public debt, limited external buffers, and a pegged exchange rate regime, constrain the policy space to respond to shocks. A stronger U.S. economy and the opening of a mega resort are expected to lift real GDP growth to 1¾ percent this year and 2½ percent in 2018, but potential growth remains low, reflecting structural impediments. A new administration—in office since mid-May— has pledged a strong commitment to revive growth and restore fiscal accountability and discipline.

Series:

Country Report No. 17/314