Mexico’s Informal Economy Surge and Banxico’s Rate Cut Dilemma

Explore the complexities of Mexico's informal economy as it reaches 24.8% of GDP, marking a decade-high milestone. Delve into the implications of Banxico's recent interest rate cut amidst inflationary pressures and potential U.S. tariffs. This episode provides insights into the challenges and strategies shaping Mexico's economic landscape, offering a critical analysis for policymakers and the public alike.

Sources:
https://www.eleconomista.com.mx/empresas/economia-informal-llega-24-8-pib-20241219-739159.html
https://www.elfinanciero.com.mx/economia/2024/12/20/banxico-recorta-la-tasa-pero-advierte-riesgos-por-aranceles/

Outline:
(00:00:00) Introduction
(00:00:37) Informal economy reaches 24.8% of GDP in 2023
(00:04:23) Banxico cuts the rate, but warns risks for tariffs