Book excerpt: Mexico has embarked on a bold package of structural reform to break free from three decades of slow growth, low productivity, pervasive labour market informality and high income inequality. The package of reforms has already helped to improve confidence and bodes well for 2015 and beyond.To make the most of this impressive package, Mexico will need to improve its governance and institutional capacity to ensure effective implementation. The government elected in 2012 quickly reached a historic agreement among previously divergent political parties on an ambitious consensus-based package of reforms known as the "Pacto por Mâxico", aimed at putting the country back on a path of prosperity. Major structural measures have been legislated to improve competition, education, energy, the financial sector, labour, infrastructure, telecommunications and the tax system, among many, and implementation has started in earnest. If fully implemented, these reforms could increase annual trend per capita GDP growth by as much as one percentage point over the next ten years, with the energy reforms having the most front-loaded effects, and the education reforms more lasting effects in the years to come.