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
“El Palomo”, a little dog who helped his owner return home after one week lost in the Sonora desert
A man, after being missing for.
High expectations for local merchants during the Christmas holiday season
Merchants of Christmas products in Mérida.
This is how Yucatecan businessman Kuri Llamas was executed in Mérida’s Díaz Ordaz neighborhood
Yucatecan businessman Roberto Kuri Llamas was.
Foreign companies open more than 600 job positions in Yucatán for English speakers
People in Yucatan with an interest.
Restauranteurs and other sectors will receive training to prevent fatal incidents in Merida
In Mérida it is urgent that.
Yucatan makes history by setting Guinness World Record in the field of people with disabilities
Yucatan makes history by imposing the.
The 2022 Orange Fair will take place from December 8 to 18
The Orange Fair 2022, which will.
Sunset over the sea gathers 2 thousand people at Progreso’s fiscal dock
The return of “Sunsets over the.
AMLO says his “military airline” will be ready by the end of 2023, almost at the same time as the Maya Train
Almost at the same time as.
Yucatan gymnasts seek economic support to represent Mexico in Dubai
Seven Yucatecan gymnasts are seeking support.