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What does the IMF say about Mexico?

October 21, 2019

The IMF released a few days ago the results of Mexico's Article IV Consultation. The protocol is an official visit by the IMF to the country in question and an evaluation is subsequently published.

Among the most interesting points, the following stand out:

Tax food with a 16% tax rate across the board.

Local taxes. Reforming property taxes (property) and vehicle registration (tenure) would allow a reduction in transfers from the federal government to states and municipalities, with the locality being more fiscally responsible.

Abolish or not expand the border tax regime as it creates distortions and erodes the tax base.

For the federal administration it indicates:

Increase non-energy public investment
Efficiency in social spending
Improve the quality of education
Reconsider Pemex's business plan with a view to profitability
Create a tax council


In general, the Fund highlights the solid macroeconomic framework, but points out the importance of revitalizing the reforms to increase productivity, thereby increasing potential growth. This would reduce poverty and inequality, as well as regional disparities.

It also suggests combating informality, reducing costs for formal companies and establishing guarantees such as unemployment insurance to eliminate hiring restrictions.

How many adjustments will the government be able to implement?

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