The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

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?

rd_banner_column-780



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. Who remembers economists in 2014 excitedly forecasting long-term sustainable GDP growth of above 5% following structural reforms of Mexico’s telecommunications, energy and financial industries?

Maybe that is why markets have shrugged off Andrés Manuel López Obrador (Amlo)’s victory in the presidential elections.




Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree