Executive summary

Encompassing 39 municipalities in 2 states, Puebla-Tlaxcala is the 4th-largest metropolitan zone in Mexico. Among its principal assets are a strategic location between Mexico City and the port of Veracruz, a manufacturing-based regional economy led by a resilient and vertically linked automotive sector, and its position as one of country’s centres for higher education. Together, these competitive advantages have helped the region weather multiple economic crises and continue to attract major economic opportunities. To ensure that Puebla-Tlaxcala remains competitive and grows sustainably over the long term, however, several critical policy challenges need to be addressed.