After running primary budget deficits since 2009, Mexico on Thursday Sept. 8 pledged to turn a projected primary deficit of 0.4 percent of gross domestic product into a surplus of 0.4 percent of GDP next year.
Standard & Poor’s and Moody’s put Mexico’s credit outlook on negative this year, flagging concerns that weak growth could keep pushing up debt after a collapse in oil prices hit Mexico’s income from crude sales.
Jaime Reusche, Moody’s senior analyst on Mexico, said higher-than-expected income from tax reform passed in 2013 had helped offset the decline in oil income. But if tax revenue doesn’t hold up, the government may not meet its targets.
“The budget continues to signal consolidation and that may indeed be favorable for maintaining the rating where it is, but the proof is in the pudding,” he said on Friday.
Mexico’s austere 2017 budget lays out deep cuts that fall heaviest on the education, communications and transportation and agriculture ministries. The government proposed cuts worth nearly 240 billion pesos, or about 1.2 percent of GDP, compared to the 2016 budget.
Moody’s and S&P are concerned that debt as a proportion of GDP could keep rising in the coming years.
To read complete article click here.
more recommended stories
Mexico will not renegotiate NAFTA under pressure, makes new offer instead
Mexico will not buckle to pressure.
Campeche: the oil dream is over, it’s time to wake up to a Tourism Reality
Campeche begins to wake up. Gone.
Regulation: the next step for Mexico’s gambling industry?
It’s considered an inspiring holiday destination,.
Why a career in the healthcare sector is a good choice?
If you want a career that’s.
World Turtle Day is celebrated on May 23
Since the year 2000, World Turtle.
Russian bots favor AMLO
It has already been 16 months.
CNN: Trump cancels Singapore summit in letter to Kim Jong Un
According to CNN, President Donald Trump will.
Mexican authorities bust counterfeit plant in Mexico City
Four members of a criminal cell.
FDI Jumps 19.6 percent in Mexico! Setting new Q1 record
MEXICO CITY, May 21 (Xinhua) —.
Mexico Is ‘Hostile Foreign Power’ (Tucker Carlson)
Tucker Carlson, an American conservative political.