Mexico should seek new sources of revenue: Gurría

Mexico's economy has been forced to become less dependent on oil revenues, said José Ángel Gurría Treviño, Secretary-General of the Organisation for Economic Co-operation and Development (OECD).

He explained that low oil prices have led the government to cut its budget, increase its debt and seek new sources of revenue.

In an interview with EL UNIVERSAL, the former Minister of Finance said that Mexico should take into account the new reality of low oil prices because it will "never" be sold at US$100 per barrel again and it is likely to remain below US$30.

He added that the government hedged oil at US$49 per barrel this year, compared to US$79 last year and that it should diversify its sources of revenue due to the drop in oil prices.

In Gurría's opinion Mexico should have a modern system that taxes consumption, properties and carbon emissions more instead of work and investment, and that the main investment source should be the private sector.

He added that Mexico's debt, equivalent to 48% of its GDP, is half of the OECD average.