Pemex Seen as ‘Drag’ on Mexico Economic Recovery, though Manufacturing Poised for Strong Year

Mexican state oil company Petróleos Mexicanos (Pemex) could hinder the country’s economic recovery prospects if the government does not shift course, according to new analysis by Rice University’s Baker Institute for Public Policy.

In an issue brief published Friday, authors Tony Payan and José Iván Rodríguez-Sanchez argued that four pillars sustain Mexico’s economy: manufacturing, remittances, tourism and oil/Pemex. Payan directs the Institute’s Center for the United States and Mexico, where Rodríguez-Sanchez is a research scholar. 

While each pillar relies to a large degree on the health of the global economy, domestic policies have a major impact as well, especially on Pemex, the authors said.

“In recent years, Pemex has had a detrimental impact on...