Mexico’s economy is looking better, but only just
2009 has been brutal for Mexico, which is under attack by the triple-headed beast of recession, a decline in oil prices and demand and the onset of H1N1 that almost decimated the economy in April and May. And now, as the economy finally starts to claw its way back on quarter-to-quarter basis (it grew 2.7%, but is still 6.4% below the third quarter of 2008), the Senate-approved 2010 budget is aiming to plug the revenue hole by effectively raising taxes on higher earners. The budget is also tackling the largely unseen and under-reported cash transactions economy by hiking a tax on bank cash deposits by half, to 3%.
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