The Threat Of Mexico’s Massive Underground Economy
The Threat Of Mexico's Massive Underground Economy by Fernando Chávez, Worldcrunch
Informal, underground, black, "hidden." Economists have used a range of terms for economic activities that basically yield no taxes and don't contribute to bankrolling government services. Strictly speaking, the millions toiling this way in Mexico — and they account for more than half the workforce — are operating on the margins of the law and arguably working themselves into a social vacuum.
In fact, there is new data about the scale of Mexico's underground economy, providing insight into its evolution over the past decade. The research, from Mexico's National Institute of Statistics and Geography (INEGI), shows that the shadow economy accounted for 25% of GDP in 2012, and employed 60% of the working population, around 31 million people. This is clear evidence of a serious imbalance in the Mexican economy…
