Energy reforms will help keep Mexico’s growth story on track

The opening up of Mexico's oil sector should boost the country's already expanding economy.

Energy-sector reform is not a topic that gets most investors' pulses racing, but it could spark "Mexico's Moment", as analysts at Morgan Stanley put it. The government has finally unveiled long-awaited plans to open its oil sector to private investment, by allowing state-owned monopoly Pemex to partner with both domestic and foreign firms on profit-sharing exploration and production deals.

Given that private involvement in oil production is highly controversial in the country, this affirms the momentum of recent reform efforts and could "unleash a rethinking of the magnitude of foreign direct investment that Mexico can attract".

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