Economists said that it would take some time before the economic reforms undertaken by President Enrique Pena Nieto could be felt by Mexicans in the form of higher wages. Nieto assumed office in December and promised to increase the country's low wages that average about USD 21 a day. A boost in salary would propel consumption as Latin America's No. 2 economy exhibited signs of slow growth. Lowered government spending, decreased remittances sent by Mexicans living abroad as well as lesser demand for Mexican exports by the US had also decreased consumption.
Economists agree that economic reforms are essential to increasing wages but former economist of the International Monetary Fund (IMF) Claudio Loser said impact would only be felt in the next few years. "It would be at least three to five years, before you would begin to notice an impact. Boosting consumption gives a short-term push, but it's not like an oil lamp, it's like a match," he added.
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