Productivity in Mexico is lower now than it was 25 years ago, according to economist Santiago Levy, who asserted on Tuesday that the lack of productivity growth is the main reason why the Mexican economy hasn’t grown at a faster pace.
Levy, a non-resident senior fellow with the Global Economy and Development Program at Brookings Institution, a Washington, D.C.-based think tank, made his remarks at...
The decline in productivity in Mexico is a complex issue that Levy attributes to the reliance on the accumulation of capital and materials rather than efficiency, innovation, or technological progress. He also highlighted that many informal businesses, which employ more than 50% of Mexican workers, have low levels of productivity. This informality rate increased 0.5 percentage points in the 12 months to March to reach 54.8%.
Levy's analysis suggests that if all the money invested in informal bus...