(PHOTO: alamy.com)
Weak growth, low oil prices and difficulties in making promised spending cuts all threaten Mexico’s push for a budget surplus next year as credit rating agencies consider downgrading its debt, Reuters reports.
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.
Source: reuters.com
Comments
more recommended stories
Las Coloradas receives its first tourists at the beginning of the economic reactivation in YucatanMÉRIDA, Yucatán.- The economic reactivation in Yucatán continues.
Man arrested in Kinchil, Yucatan as he threatened store owner with a knifeKinchil, Yucatan (September 16).- Carlos Q.P.,.
PRD political party says AMLO seeks a political lynchingThe PRD parliamentary group in the.
Two humungous glaciers are breaking free from their restraints in AntarcticaTwo of Antarctica’s most important glaciers.
Why California Will Continue to Burn Well Beyond This Fire SeasonA thunderstorm 1,100 miles south of.
Isla Mujeres leads the Mexican Caribbean in hotel occupancyThe north of Quintana Roo has.
INAH identifies the first Maya slave shipwreck in MexicoSisal, Yucatan (September 15, 2020).- Two.
Early arrival of cold fronts to Yucatan this yearThe “Cold Front” season begins in.
European airlines resuming flights to Cancun in OctoberAfter the announcement that the Swiss.
They became the first brother and sister team to row across the AtlanticAnna and Cameron McLean spent 43.
BUSQUE A UN MÉDICO
Leave a Comment