News
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Mexico to raise base wage, new leader pledges more hikes to come
M
exico’s wage commission said on Monday it planned to hike the country’s minimum wage by 16 percent to around $5 a day and new President Andres Manuel Lopez Obrador pledged further rises to keep up with inflation. The $0.71-a-day raise, the biggest in percentage terms since 1996, followed two hikes of around 10 percent by the previous government also aimed at boosting the purchasing power of low-income workers. Persistently low salaries for many Mexicans stoked the frustration that led to the landslide election of leftist Lopez Obrador, who has pledged to raise living stan-
dards to reduce crime and discourage migration to the United States. “During many years the minimum wage has lost its purcha-
sing power. Some say it has lost 70 percent of its purchasing power over the last 30 years,” said Lopez Obrador, who took office on Dec. 1.
Jan. 3 - 9, 2019 www.vallartatribune.com
“We’re never going to have wage (increases) below inflation,” he pledged at an event with the wage commission, made up of government, business and labor representatives. Mexico’s annual inflation rate is running around 4.7 percent, above the central bank’s 3 percent target. The wage commission said the daily minimum wage would rise to 102.68 pesos from 88.36 pesos on Jan. 1. But the Mexican employers’ confederation Coparmex said in a statement that within 25 kilometers (16 miles) of the U.S. border, the minimum will be increased to 176.72 pesos. Lopez Obrador has called for doubling the minimum wage in northern states close to the United States. Markets welcomed Lopez Obra-
dor’s maiden budget, delivered on Saturday, for pledging to stick to fiscal discipline. But the wage policy has raised concerns about its effect on prices and interest rates. Minimum wage increases have so far not put upward pressure on wage demands overall, but the central bank warned last month that indexing wages to inflation could lead to an upward price spiral. Benito Berber, chief economist for Latin America at Natixis, said the policy could push the central bank to raise interest rates on Thursday. “It seems the government is willing to accept higher inflation and perhaps stickier inflation,” Berber said. “Banxico has been clear that wage increases above productivity would entail tight monetary policy.”
Number of foreign tourists in Mexico grows by 6.5%
T
he tourism industry in Mexico continues with positive numbers, registering the arrival of 33,691,000 tourists from January to October of this year, which meant a growth of 6.5 percent compared to the same period in 2017. According to information from the Bank of Mexico (Banxico) and the National Institute of Statistics and Geography (Inegi), this represented 18,257,000 US dollars, a 5.1% increase. According to data from the Ministry
of Tourism (Sectur), of the total number of foreign tourists arriving by plane, more than 80% are concentrated in five destinations that are: Los Cabos, Puerto Vallarta, Guadalajara, Mexico City and Cancun-Riviera Maya. The average spending by traveler was 488.09 dollars, a decrease of 0.99% over the previous year. As for those who cross the border by car or by foot and only spend a few hours in the country, 47,245,000 were registered during the first ten months of this year, a decrease of 4.7%.
Where Is This?
F
ind this on a guided walk around historic Vallarta with PuertoVallartaWalkingTours.com. Stroll the cobblestone streets, typical of Spanish Colonial architecture, while absorbing the sights, smells and sounds of daily life. Visit markets, historic buildings, and workshops. Get immersed in the culture while exploring areas you might not find on your own.
These hand-carved wooden molinillos have been used for years as the traditional way to create foam when making hot chocolate. Named after Alonso Molino who discovered these tools in 1571 in Mexico when he saw the locals using them. The more detailed the wood, the more foam is created. www.puertovallartawalkingtours.com