A Wide Gap in Views of Mexico's Economy Tim Johnson - McClatchy
go to original February 9, 2014

The views of Mexico’s economy by ordinary citizens and those living outside the country these days could hardly be more different.

Mexicans are now feeling the impact of a tax overhaul enacted late last year, and it has put them in a grumpy mood. Consumer confidence, as measured by a government index, has fallen to its lowest level in four years.

In January alone, the confidence index fell 6.2 percent and is down 15.5 percent from a year earlier.

Everyone feels the pinch of the new taxes – from the consumer buying a soft drink at the corner kiosk to the millions of Mexicans living near the U.S. border who suddenly saw a 5 percent increase in the value-added tax.

Economists say the sour mood will have a short-term impact on sales of appliances and other durable goods as Mexicans, feeling poorer, rein in their purchases.

Read the rest at The Tribune

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