President Enrique Peña Nieto’s landmark energy reform legislation – Mexico is now the country all investors are talking about. Many argue that it is set for a stellar year in 2014, with an economic recovery gathering pace and an investment surge shaping up. We believe the secret to under- standing this important economy may involve disentangling two separate – but connected – ‘Mexico stories’. One is a long-term story about the successes – and failures – of attempts to make the economy more competi- tive. The other is a shorter term, more cyclical story of the management of the country’s business cycle. How do they relate?

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