##2 and in mexico ’ s oilproducing capacity, 3 led to a reduction of fiscal revenues from this source from 8. 8 percent of gdp in 2012 to 3. 8 percent in 2017. 4 uncertainty associated to the possible trajectory of interest rates in the united states, to a significant extent driven by the risks deriving from fiscal expansion in an economy operating around full employment, has been sharper in mexico than in other emes, given tight links with the us economy and a high degree of openness to foreign capital flows. the 2016 presidential election in the united states and its aftermath have resulted in unease regarding the prospects for the economic relationship between the two countries in coming years. the renegotiation of nafta has become a focal point of attention for both domestic and foreign investors, in view of the importance of this agreement for the region, both from an economic and an institutional point of view. the potential economic and political implications of the recently concluded electoral process in mexico, where a new president, congress and several state governors were elected, has also been a source of uncertainty. partly as a result of several of the above factors, the availability of external financing declined significantly, from an annual average above 4 percent of gdp in 2013 - 14, to some 1. 5 percent in 2015 - 17. although the price of the mexican crude oil basket has recovered from the lows registered in early - 2016, this came atop a sharp fall over the previous year and a half, thus resulting in current prices that are still about 30 percent below the peaks of mid - 2014. oil production nearly halved in the last 15 years, from 3. 45 million barrels per day in december 2003 to 1. 87 million barrels per day at present, a drop of 46 percent. although the energy sector reform of 2013 is expected to foster oil output, results are likely to flourish only gradually over coming years. as per the most recent projections ( march 2018 ), public oil revenues are expected to amount to 4. 0 percent of gdp this year. the mexican economy has adjusted to these shocks through a number of channels. chief among them is the significant depreciation of our currency since september 2014 which, in terms of its value vis - a - vis de us dollar, accumulates to date around 46 percent, a metric that at some stages has recorded figures nearing 70 percent. of course, notwithstanding the abovenoted reduction in the pass - through coefficient, this has had important implications for inflation. although

early years of this millennium, the legal framework for protecting creditor property rights was strengthened and credit bureaus were formed. banks ’ business models have also become more suitable in the wake of the lessons learned by managers from crises and the transfer of technical skills from other countries. prudential regulation has received a careful overhaul based on experience from the most recent global turmoil. fourth, the public defined - benefit pension system was replaced by a privately funded defined - contribution system, in which workers hold individual retirement accounts operated by specialized private asset managers. this has had the double effect of nourishing deeper capital markets while making the pension system sustainable in the long run. fifth, the lack of obstacles to free international capital movement, especially since the early 1990s, has been combined since 1995 with a flexible exchange rate regime, which has served as a buffer in turbulent times. indeed, the resilience of the mexican financial system for the structure and recent development of the financial system and its intermediaries, see banco de mexico ( 2013 ), reporte sobre el sistema financiero, september. bis central bankers ’ speeches was tested by the recent global crisis. despite real and financial shocks to the economy, financial markets operated with no disruptions and with sufficient liquidity during the most volatile period, while banks remained solvent. furthermore, the international financial bonanza since 2010 resulted in substantial portfolio capital inflows directed to mexico ’ s equity and fixed - income assets. especially noteworthy have been increasing holdings of peso - denominated government bonds by non - residents, a trend that has only recently slowed. given the possibility of future bouts of heightened global risk aversion, sudden stops or even reversals of capital flows cannot be ruled out. the authorities remain vigilant to the need for measures to make the mexican financial system more resilient in such an event. in the long run, mexico faces two significant and interrelated challenges to financial development : greater deepening and wider inclusion. mexico is one of the emerging economies with the lowest ratios of credit to the private sector relative to gdp, and with less favorable coverage of financial services geographically and across different income strata. the relatively compact mexican financial system finds its roots in previous domestic crises and a history of high and volatile inflation and financial repression. fortunately, the deepening process was renewed during the last decade, as a result of a sounder policy framework. to further facilitate this process, the authorities have allowed new forms of bank