Experts estimate that Mexico’s debt could rise 11% under President Enrique Peña Nieto compared to the previous administration.
Even though experts agree that Mexico’s debt is at a manageable level, they warned that its upward trend is a cause for concern for the coming years.
The Center for Economic Research and Budget (CIEP) estimated that by the end of Enrique Peña Nieto’s tenure and given the debt’s track record, it could reach 51% of the Gross Domestic Product (GDP). This means that debt would rise 11% during this administration compared to Felipe Calderón’s tenure.
Héctor Villarreal, director of the CIEP, said that seven years after the financial crisis of 2009, public finances remain in a fiscal imbalance and that the 2015 Budget Law does not address this problem.
The chairman of the Committee of Economic Analysis of the Mexican Institute of Public Accountants, Ernesto O’Farrill, said that even though the budget is apparently responsible, public debt rose by 8.2% of the GDP in the last two years.
“At this rate, by 2026 debt would reach 100% of the GDP. The deficit is even more alarming if we consider that the ratio tax revenue to GDP has failed to surpass 11% of the GDP despite the tax reform,” he said.
Mexico’s tax revenue is estimated to reach 10.7% of the GDP by the end of 2015, compared to 15% to 25% among the Latin American members of the Organization for Economic Co-operation and Development (OECD).
“Public debt will reach 43% of the GDP next year. Apparently it is not very high and there could be a greater debt capacity, but 43% equals to four years of total tax revenues,” O’Farrill explained.
more recommended stories
Semarnat opens constitutional dispute against urban center in Holbox
The Secretariat of Environment and Natural.
New Chichén Itzá virtual tour
Google digitized several historical landmarks and.
OPINION: Campaign against “Noise” in Mérida Centro could have an electoral purpose
According to medium.com, the conflict generated.
3 Mexican film students caught in gang turf battle end up murdered
Three vanished film students whose case.
Chichen Itza and beyond: Mayan ruins in Yucatan, Mexico
According to CNN, Mexico is the North.
Vegans make public demonstration in downtown Merida
On Saturday April 14, activists of.
Valladolid highlights the wealth of Yucatan
The artisanal, cultural, gastronomic, architectural and.
Cuxtal Ecological Reserve: a place to spend a fantastic weekend with family and friends
The city of Mérida has a.
“I would like to see a safer Mexico”, Roberta Jacobson
“The bilateral relationship of Mexico and.
La Plancha, a historical opportunity for “La Blanca Mérida”
Residents of the neighborhoods near to.