Mexico has a small income, so “we are condemned to continue having a small State, a small government that does not allow you to act when you have an emergency like the one we are experiencing,” said José Ángel Gurría, former secretary general of the Organization for the Economic Cooperation and Development (OECD), to the newspaper El País.
That puts Mexico before a great opportunity in the fundraising arena.
“How much does Mexico collect in taxes? If you only take what they charge people and companies 13%; and if you add what Pemex pays, more or less 17 percent. So I am not saying that Mexico is going to 50%, but between 17 and 34% —which is the OECD average—, there is a good distance ”.
Despite this, the former Mexican official said that the country is in a good position to regain its growth path after the Covid-19 pandemic.
“Mexico is well connected with the whole world, especially through trade agreements.”
But he warned of inflationary risks. He even acknowledged that he himself changed his opinion about the duration of these pressures.
“There are some inflations of a clearly temporary nature and others of a more structural nature. What are the temporary ones? The price of oil, there is a problem of supply and demand there ”.
“There are other elements. Freight costs, that seems to be a bit more structural problem than I thought at the beginning of the pandemic.
Reference-www.eleconomista.com.mx