Why is Mérida very expensive?executives of the Mexican Institute of Finance Executives were asked (IMEF) in Yucatan.
The answer was that The shortage is a matter of supply and demand. When There is more demand and less supply, everything becomes more expensive.
That is, there is a phenomenon of high consumption in Mérida, high demand for services due to the migration of people from other entities and the supply does not keep up with the demand.
Data of the Inegi and the Uady Faculty of Accounting They confirmed that Mérida is the fourth most expensive city in Mexico.
In First place is Monterrey, followed by Querétarowhich was very similar to Yucatán and the industrial and economic boom now generates security problems.
In Third place is Mexico City, fourth Mérida, and fifth Guadalajara.
However, if salaries are compared between all those cities in the most expensive ranking, it will be concluded that Mérida is much lower than Guadalajara, which is a little cheaper and with better salaries.
Caution in personal finances
Given the high cost, the president of IMEF Yucatán, Isaías Marrufo Góngora, recommended caution in personal financesmake smart decisions, look for lower priced substitute products, rethink consumer habits and sadly there are restaurants or services that are unaffordable for your pocket.
“Although it hurts a lot, we should reduce visits to restaurants or go to those with lower prices so that quality of life expectations are maintained.”
Marrufo Góngora specified that the work of the IMEF is informative, but it is clear that each citizen is free to make the decisions they consider.
This panorama of famine in Mérida has a certain advantage because real estate sectorwhich is anticipated the demand for houses, has a great housing supply, it is a sector that is slowing down its operations and hopes that this will generate a drop in housing prices.
However, he sees it as difficult because at this point no one wants to lower their prices, much more so if there is almost no land available in Mérida.
Precisely this scarcity of territorial reserve in the yucatecan capital causes the real estate development be outside the Peripheral Ring, but that generates complexity in transportation due to the distances of the journey.
For this reason, many users take more than an hour of travel to get to work or school, which affects people’s quality of life.
Do you see that the State government’s strategies to support the economy are appropriate, is it on the right path to return to the growth of previous years?
“As IMEF we are not qualified to evaluate governments. It is not the line of the national IMEF; however, our analysis is more data-driven,” he explained.
“In that sense, we refer to the data and the positive thing is that we are growing better than other cities in Mexico. The negative thing is that we are not growing like in previous years.”
Marrufo Góngora said that Yucatán has economic growth below the national average of the past, but growth above the national average.
What will the end of 2025 be like in economic matters?
In fact, according to his assessment two months from the end of 2025, he sees that it will end as it started: with low growth, stagnation and deceleration.
He does not expect significant changes in the economy even though interest rates, which affect the cost of money, have a slightly downward trend with the idea of lowering the cost of money to encourage greater consumption and greater economy.
That has greater inflationary pressure. Therefore, the Bank of Mexico debate whether the reference rate remains at 7 or returns to 7.5, very close to the 8 it was.
“We invite the population to handle their credit cards very carefully,” he recommended. “The Good End is coming, we invite you to consume products made in Yucatán and made in Mexico.”
“They also have to look at their ability to pay and be very responsible, assessing whether they will be able to pay the principal and interest each month. Not incurring default interest, credit surcharges, all of this reduces financing options and makes money more expensive for people.”
How is 2026 coming? Will all the indicators continue at the same pace or could it improve a little?
“There is no substantial economic improvement. The IMEF expectation is 1.3% growth in the Gross Domestic Product,” he said. “It is not very different from what the State will present and we are concerned because 1.3% is not enough for the number of people entering the labor market.”
That 1.3% could generate a decrease in GDP per capita, meaning that each Mexican will generate less money and that will impact consumption, it will not generate a favorable environment.
What they see with solid stability is the exchange rate, the dollar could reach $19.95 by the end of 2026.
“The equivalent of the Bank of Mexico in the United States has, in accordance with the American Constitution, two objectives: to control inflation and to promote the economic environment and growth.”
“On the other hand, the Bank of Mexico only has one objective: to control inflation. I think both issues are very important because controlling excessive inflation can generate an environment of economic contraction.”
The lower the interest rate is, he explained, the less the interest burden they have on companies and that means the economy can grow a little more, but the risk is that inflation gets out of control and that impacts people with a decrease in their real income.
Regarding future investments in the expansion of the high port of Progreso and the railway branch from Poxilá (Umán) to Progreso and its impact on the local economy, Francisco Álvarez Cuevas, former president of the local IMEF, He considered that they will favor economic dynamism, but it would not be enough to have 3% growth as desired.
Another element that would help economic growth is formality, the more companies and more people join formality there would be economic benefit, greater contribution, greater payment of taxes, greater budgetary tool for the government to fulfill its obligations.
Joint growth
Francisco Álvarez Cuevas, former president of the local IMEF, referred to the economic outlook.
“Formality costsbut on the other hand it gives us the capacity to grow and it gives us the capacity to finance,” said the interviewee. “We should bet on everyone moving towards greater formality.”
“As IMEF and the Business Coordinating Council, we constantly ask the state and federal authorities not to charge us more because they put pressure on those of us who are in formality, but rather to look at informality and give them facilities or attractive incentives to be formal.”
More than half, informal
The importance of formality in Yucatán is that around a 58% of the population works informally and this is a tax leak, especially payroll taxes, it was explained.
Other strategies that governments at the three levels can include to encourage economic growth are to lower the cost of operations. For example, the streets of the city and the state would not have as many potholes because that would avoid additional spending on purchasing tires and maintaining vehicles.
Blackouts
Also that the high altitude port is efficient in loading and unloading so that the additional cost of freight is not charged to consumers, which there would not be so many blackouts because the unexpected power outage not only leaves homes and businesses without powerbut it damages electronic cards of technological devices. “All of these things reduce costs and increase productivity throughout the state.”