Tuesday , December 1 2020

The Mexican economy continues to grow despite external shocks:



In the third quarter of this year, the Mexican economy is growing and has healthy public finances, despite the external shocks it has faced in recent years. Ministry of Finance and Public Credit (SHCP).

The country's public finance unit said that the federal government had followed a strategy aimed at preserving the macroeconomic stability and promote ceconomic growth of the country.

This strategy, he explained, was based on the commitment to maintain a sound macroeconomic framework with sound public finances and the implementation of an ambitious set of structural reforms that laid the foundations for increasing the country's productivity and competitiveness.

It has also allowed Mexico to continue to grow despite the external shocks the country has faced in recent years, with Gross Domestic Product (GDP) in 2.4% per year so far this administration.

"In the absence of strengthening the macroeconomic framework and implementing structural reforms, a significant economic slowdown would have been observed," he said. Weekly report of your vocation.

He stressed that the level of international reserves also contributed to the confidence shown by the country's international markets. complemented by a flexible credit line with the International Monetary Fund for $ 88 billion and the credit line with the United States Department of the Treasury 9 billion dollars.

In addition, the bank's degree of capitalization, a moderate current account deficit financed with direct foreign investment and historical levels in the funds stabilizing public revenues, noted the Ministry of Finance.

They reported that economic activity in Mexico showed a recovery in the third quarter of 2018, after the deceleration it exhibited in the second quarter, since GDP presented Seasonally adjusted quarterly increase of 0.9%, it is a Annual increase of 2.6%, with numbers without seasonal adjustment.

The federal agency pointed out that this dynamism was favored by the acceleration of non-oil exports and the growth in consumption of services.

In terms of public finances, he said that in the third quarter of 2018, the major balance sheets were better than planned, which is explained by higher-than-expected revenues.

He indicated that in this period, the public balance presented deficit of 311.2 million pesos, less than the programmed deficit of 364,200 million pesos; the primary balance presented a surplus of 108,300 million pesos, more than expected in the program of 72.0 billion.

O Public Sector Financial Requirements (RFSP), the broadest measure of the balance of the Federal Public Sector, is in line with the objective of a Deficit of 2.5% of GDP by 2018.

With this result, it is expected to continue the downward trajectory of the Historical Balance of the RFSP and that at the end of the year they are located in 45,5% of GDPbelow 46% of GDP registered at the end of 2017.

Thus, the debt structure is robust to deal with the shocks of international financial markets, the Finance Ministry said.


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