Back

Economy & Business - February 2004

Whacked by interest rates

Where Fox does have a case is, surprisingly, on wages. Despite a slack labour market, wages have kept ahead of inflation and thus risen in real terms. The government has also done some essential work in improving state finances and, apparently, reversing the long-term decline of the country's key revenue generator, the state oil company, Petróleos Mexicanos (Pemex). Pemex has raised production by 5% and income by 10%, and its tax contribution has gone up by 5.5%. Essentially, buoyant international oil prices have enabled the government to increase spending on health, education, anti-poverty and rural initiatives. In addition, states and municipalities have received an extra 6% in real terms from the central government since Fox took office.

End of preview - This article contains approximately 2286 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

Back

Articles in this issue