In a nation of 10 million, Mexico’s government has the largest debt in the Americas.
The country is also the world’s second-largest exporter of oil.
The world’s most indebted nation, Mexico is facing a debt crisis of its own, with an estimated $2.4tn of debt outstanding.
But the problem isn’t just the national debt.
The problem is that the country has been borrowing money to pay for the salaries of its soldiers and police, while the economy has been stagnant for years.
In addition, Mexico has been in a constant state of economic decline, and the economy is barely growing.
“This debt problem has been going on for decades,” said Luis Alomar, a Mexico City-based economist.
“It’s been going up and down, but it’s not like it’s been accelerating,” said Alomarr, a former Mexico City governor.
Alomaro has a theory as to why this is happening: the peso, the country’s currency, has been a currency peg for the past 40 years.
“The peso has been linked to the interest rate,” he said.
“So if the rate goes down, it has to go down, which means the money that was in the bank account of the central bank will go into the bank.
So the country will be stuck with a monetary system that is very unstable.”
Mexico’s central bank has said that it will hold the pesos at a 0.2% interest rate.
But this has caused some people to question whether the country is actually running out of money.
“I’m not really convinced,” said Antonio Martinez, an economist at the Universidad de Guadalajara in Mexico City.
“There’s a lot of money out there and not enough to pay the bills.
The central bank doesn’t want to have the money.”
A decade ago, the pesocurrency was pegged at about $100 a US dollar, but in 2016 it was pegged to the US dollar at about 85%.
In a way, the Mexican government is actually the bank that is supposed to be paying the interest on the national currency.
In the last six years, the national government has used about $5bn of its national debt to pay down its own debts.
But it has yet to repay these loans.
“They’re all tied up in a lot more than a debt that they can pay back,” Alomars said.
Mexico’s economy is currently contracting by 6.5% a year, and in 2016 the country lost nearly 4.5 million jobs.
Unemployment is currently above 23%.
The government says it is trying to tackle this problem by cutting spending and reforming the economy, but there is no guarantee that these reforms will make the situation better.
The government has been trying to raise the minimum wage to the equivalent of $9 an hour, and it has said it will hike its retirement age from 65 to 67.
Alomear believes that these measures will only exacerbate the problem.
“People are going to work more and get less,” he added.
“If the minimum wages increase to the same level as the retirement age, that will be a big problem.
And if the minimum salaries are higher than the retirement ages, then they’ll have less incentive to get a job.”
The latest inflation data shows that Mexico’s inflation rate has risen by 9.2%, to 5.6%.
But this is still only slightly better than the global average.
Inflation in the United States has increased by 4.4% a month, and Germany has risen 5.5%, the highest inflation rate in the world.
It is estimated that the inflation rate will climb to 3.5-4% in 2021.
In 2016, the IMF estimated that Mexico would have $9.6bn in external debt and $15.4bn in internal debt.
However, Alomaria’s numbers put the national total at $15bn in debts.
Mexico has more debt than it has GDP, and that is expected to grow.
Alomaar believes the government has to act now.
“Mexico needs to do something about its debt,” he told Al Jazeera.
“To get rid of this debt, it needs to cut spending.
It needs to raise taxes, it need to increase taxes on capital.
The tax revenues are not going to go anywhere.”