78.8 F
Mérida
Friday, October 15, 2021
###

The bright side of Mexico’s economy

Latest headlines

Cozumel’s cruise industry bounces back in a big way

Quintana Roo has come to depend on a steady stream of cruise-goers, to maintain jobs at businesses including restaurants, excursion operators,...

Massimo Bottura’s community dinner is fighting hunger in Refettorio Mérida

Refettorio is a cultural project designed to offer dining experiences through the transformation of surplus ingredients into nutritious and beautiful dishes.

In Europe, Mexican Indigenous organizations denounce the Mayan Train

Indigenous groups from across Mexico, including Yucatán and Quintana Roo, sailed to Europe in what they describe as an invasion of conscience.

A private paradise at your Yucatán country estate

A private country estate is all yours in Yucatán. Contact Eric Partney at Mexico International. Ideal for those...
Yucatán Magazine
Sign up to get our top headlines delivered to your inbox twice a week.

While oil production is falling, gains in auto production and consumer spending are helping give Mexico the fastest growth among major economies in Latin America and an expansion that’s quicker than several large oil producers.

Lower oil prices are great for consumers, but bad for countries — like Mexico — that depend on oil revenue. But for Mexico, it’s not as bad as many people think, Bloomberg analysts report.

That’s because in the last two years, the federal government has been diversifying its sources of income. Mexico raised the maximum income tax rate to 35 percent, increased the sales tax in states along the U.S. border and applied an 8 percent levy on junk food, for example.

The tumble in global oil prices has sent Mexico’s currency to a record low and forced the nation to cut spending and raise interest rates. Yet Latin America’s second-largest economy is actually less dependent on oil revenue than at any time in the past decade.

Oil rigs are seen from the Pemex Ku-S oil processing center, part of the Ku-Maloob Zaap complex, in the Gulf of Mexico, off Ciudad del Carmen, Campeche.
Oil rigs are seen off Ciudad del Carmen, Campeche. The tumble in global oil prices has sent Mexico’s currency to a record low, but the news isn’t all bad.

Mexico’s non-oil tax revenue climbed 27 percent in 2015 from the previous year, double the fastest rate since at least 2003, according to the Finance Ministry.

Income from government services and state-owned companies other than Pemex, contribute another 25 percent to the total federal intake, Bloomberg reports.

The government in the past two years has implemented a sweeping tax increase aimed at weaning the nation off its dependence on crude oil sales.

Oil and gas drilling represented only about 5.3 percent of Mexico’s gross domestic product last year, about half the level from two decades ago, when NAFTA took effect, and today is dwarfed by manufacturing and service industries such as tourism.

- Advertisement -
- Advertisement -

More articles

Yucatán’s bars and cantinas forge a new lobbying association

The group, which is now known as Asociación de Cantineros, is already made up of over 120 members but is yet to elect its first president. 

Progreso to host the Americas’ largest shipyard

Yucatán's Gov. Mauricio Vila Dosal in Trieste Italy with the executive board of the Italian company Fincantieri. Photo: Courtesy

The Dresden Codex, the great Maya book of the stars

The Dresden Codex is a Mayan book believed to be the oldest surviving book written in the Americas, dating to the 11th or 12th century.

How photographer Mike Diaz captures Yucatán’s unique environment

As Mike grew up, he dove back into nature, researching the environment, wildlife, and space. He understood the process he had to follow in order to achieve the photos he dreamed of.

Live music is back at Yucatán’s restaurants and bars

e measure was put in place over a year and a half ago along with a series of other restrictions to help against the spread of COVID-19.

Monument to the Montejo ‘covered in blood’ once again

A group of protesters staged a demonstration in front of the monument to the Montejo, vandalizing it and chanting anti-colonialistic slogans.

Camino del Mayab connects visitors with Yucatán’s remote communities

Photo: Camino del Mayab The Camino del Mayab, a network of trails that begins in Dzoyaxché, spreads out...

Parque De La Alemán — The bustling heart of one of Mérida’s original neighborhoods

The park, which measures about a full city block, features a roller skating rink, a children's playground, a large esplanade with a musical fountain, green areas, and a stage where artistic and cultural events are frequently held.

Yucatán cancels Xmatkuil fair and Hanal Pixán altars at Plaza Grande

The news comes as a disappointment for many who thought that a return to yellow on Mexico’s epidemiological traffic light system would mean more of a return to normal for public events. 

New sterilization campaign in Progreso cracks down on stray animals

The number of stray dogs and cats on the streets and beaches of Progreso has become a public health hazard, admits Mayor Julián Zacarías Curi.