Mexico needs to broaden and deepen its financial system without compromising the financial stability gains of the last decade. Much more private investment is needed to transform the economy to boost productivity, and despite improvements in recent years, many households and firms still lack adequate access to financial services. Strengthening competition and streamlining key regulations for firms are key to increasing Mexico's competitiveness. This note provides a medium-term agenda for supporting Mexico's competitiveness by fostering greater innovation. This policy note outlines short- and medium-term policy options for addressing critical challenges affecting labor markets in Mexico, and in particular labor productivity. This note reviews the challenges in Mexico's social protection system and possible options to achieve an integral and effective system that is more than the sum of its parts. This policy note contributes to the debate on Mexico's looming fiscal challenges. To achieve higher growth and reduce poverty and inequality, Mexico needs to improve public service delivery. This note assesses Mexico's pending subnational fiscal reform agenda. This note is structured as follows: chapter one is fostering sound financial sector development
chapter two is toward a more competitive business environment
chapter three is fostering innovation for productivity and competitiveness
chapter four gives labor markets for inclusive growth
chapter five deals with promoting an integral social protection system
chapter six deals with reducing the footprint of growth
chapter seven gives ways of using natural resources in an optimal way
chapter eight presents managing medium-term fiscal challenges
chapter nine deals with strengthening public revenue and expenditure management to enhance service delivery
and chapter ten is strengthening subnational public finance.