The Mexican babies have a debt of 3,378 dollars at least.
But this amount will be more when they can work, after 18 years old or after they finish the College.
That is the amount that each citizen in Mexico has as debt considering the public debt-domestic and external-of federal government. I am not considering the debts of each state which would increase the amount considerably per citizen.
In 2012, when the President Enrique Peña Nieto started his period, each Mexican had a public debt of 2,714 dollars; that means 664 dollars less.
With the last three presidents, Vicente Fox, Felipe Calderón and Peña Nieto, the public debt has been increasing, but the country has been in its worse period from 2006, according to the Mexican Bank (Banxico, in Spanish).
Fox started his government in 2000 with a public debt of 54 billion dollars today, and finished in 2006 with 85 billion; Felipe Calderón left the presidency in 2012 with 268 billion of dollars of debt; and Enrique Peña Nieto increased this amount to 403 billion, which means 139 billion more in the last four years.
At the end of 2008, the Mexican debt was around 116 billion dollars, but on January of 2009, just one month later, it was 166 billion; Calderón increased the debt 50 billion. His administration explained the reason on the website of the National Institute of Statistic and Geography (Inegi, in Spanish). They justified the raise because there were fiscal movements in the Social Security Institute Service Workers (ISSSTE, in Spanish) and Pemex. Just in one month!
All the countries have public debt; it is necessary to complement the public finances, mostly for infrastructure projects or social or health programs, even security. Some have debts more than 200% of its Gross Domestic Product (GDP), as Japan, but even with that level, this country is considered one of the best economies in the world, for its market and infrastructure. United States, for example, has a debt up to 70% of its GDP.
The public debt of Mexico is up to 40% of its GPD. But, we have to be honest: Mexico does not have the infrastructure that Japan and United States have.
The economic situation in the world has been affecting the Mexican economy more than others. When the fluctuation of the dollar started in 2010-2012, Banxico tried to affront the problem selling thousands of millions, but that did not help. In 2012, the dollar was sold for 13.9 pesos, and now it’s more than 19 pesos.
Nonetheless, in June, the Executive Board of the International Monetary Fund (IMF) approved to Mexico an increase to its Flexible Credit Line (FCL) in an amount equivalent to US$88 billion.
What does that mean? That means that Mexico can use that money in case it needs it. That does not mean that the country will use all that money. But, wait! The government has already paid around 1.7 billion dollars to the FMI since 2009, as was explained by Banxico to the Reforma newspaper.
As I said, I did not talk about the public debt of each state; which some of them are with serious problems.
The economic situation is not the best, because there is not much employment and the companies are paying around 4,000 to 8,000 pesos per month-around from 200 to 400 dollar-to people with degree or master degree. That money is not enough for living.
Even, as per a study of the National University, the purchasing power of the country is similar to the 1970 decade. What does that mean? The citizens have more money, but they can’t buy more.
So, if the Mexicans have to pay the public debt, can they afford it?