Economic change: Mexico is missing the main target

The informal economy in effect blocks growth, so why is no one proposing tax and social security reform to bring workers and companies into the formal sector?

The Mexican economy has been remarkably a consistent performer since the 1994 tequila crisis. 

Annual GDP growth has averaged 2.48% and, while there have been some peaks and troughs, economic performance has been remarkably consistent regardless of who has formed the government. It hasn’t mattered whether they are relatively left or right-leaning, whether they have majorities or minorities in congress, are reformist or managerial, or whether they have been boosted or battered by international events.

The outgoing government is an interesting example: the reforms introduced at the beginning of Enrique Pena Nieto’s administration got everybody very excited.

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