Viewpoint:Agustín Carstens It is estimated that during 2017 inflation will hover around the upper limit of the variable interval established by the Banco de México – this limit is 4% annually. It is, however, expected that during the last months of 2017 the rate will converge downwards towards this target and will lie around 3% at the end of 2018. Therefore, inflation for 2017 is expected…
Viewpoint:Ricardo González Orta The main pillars of the Mexican tax system are federal corporate and personal income tax, value-added tax, excise tax and foreign trade tax, as well as social security contributions. Since 1980 Mexico has transitioned to a system of tax coordination where it was agreed that the federal government would retain the right to collect the most important taxes while…
Viewpoint:César Maillard Canudas With macroeconomic uncertainty at the start of 2017, the year is set to be a challenging one for the labour market in Mexico. In Latin America we have observed that all structural changes, no matter how simple they are, have brought about contradictory repercussions. For instance, while the economy continues growing, the population has had to bear the brunt…
The current government has made a number of changes to Mexico’s federal labour law. One of its first initiatives in December 2012 was to regulate outsourcing through third-party hiring or subcontracting by sharply increasing fines chargeable to employers for violating outsourcing regulations, making individual employment contracts more flexible, and capping employer liability to laid-off workers…
Mexico is gearing up for general elections that will be held in June 2018. The country will be going to the polls to choose a new president as well as 500 members of the Chamber of Deputies and 128 members of the Senate. Coming at a time of increased uncertainty over the North American Free Trade Agreement (NAFTA) and the future of free trade, the elections are set to test the direction of Mexico’s…
Given that Mexico shares a long land border with the largest economy in the world, and that, particularly since the North American Free Trade Agreement (NAFTA) came into force in 1994, barriers to trade and investment between the two countries are minimal, it is natural that the US would be Mexico’s most important economic partner. These linkages are particularly striking in the sphere of exports,…
Given Mexico’s location on the doorstep of the world’s largest economy, its low unit labour costs, and its openness to trade and investment, the country has become a manufacturing hub serving the US and other markets. Since the North American Free Trade Agreement (NAFTA) was implemented in 1994, the country has become deeply integrated into North American supply chains, becoming a leading exporter…
Since the economic, financial and banking crisis of 1994-95, many Mexicans have lacked full confidence in the integrity of the banking system. It shrunk greatly during and immediately after the crisis. In the intervening years, banking regulations have been greatly tightened, foreign entrants to the sector have come to dominate, and credit as a share of the national economy finally appears to have…
Having been plagued by chronic high inflation and periodic crisis until the mid-1990s, Mexico turned to economic liberalisation in the wake of the 1994-95 “Tequila crisis”. Among the important reforms was the granting of independence to the central bank, Banco de México (Banxico), in the operation of monetary policy, along with a clear mandate to control inflation above all other policy considerations.…
Private equity in Mexico has achieved over $42.5bn in capital commitments over the past 16 years, expanding at a compound annual growth rate of 20.27%. In 2016 nine development capital certificates ( certificados de capital de desarrollo, CKDs) were issued, three of which were for infrastructure and energy, two for real estate, one for venture capital and three for private equity. Additionally, the…
