OECD's annual survey of the Mexican economy. Part I reviews economic developments and the forces which led to the December 1994 crisis, and assesses the role of economic policies. The various steps taken to stabilize the economy and reduce financial market volatility are discussed in Part II, which also sketches out the short-term outlook. Part III of the survey examines macroeconomic policy requirements facing the authorities in the years ahead, once the immediate objectives of stabilization are attained. Boosting sustainable growth over the medium term will require that structural reform continues in a number of key areas, notably privatization, competition policy, prudential supervision, the agricultural sector, and the labor market. Part IV presents an overview of the progress made in these areas and attempts to evaluate the need for further reforms. Issues and policies related to widespread poverty of the population are discussed in Part V. OECD's policy conclusions are presented in Part VI.