Mexico government focused on sustainable public debt in 2023 budget
Mexican economic growth is expected to hit 3% in 2023, up from 2.4% this year, amid cooling inflation, the federal government's budget document showed on Thursday, above the Bank of Mexico's growth forecast of 1.6% for the coming year.
The budget forecast tax revenues of 4.6 trillion pesos ($231 billion) in 2023, and tight public spending, aiming to bring public debt to 49.4% of gross domestic product in 2023.
Mexico's finance minister Rogelio Ramirez de la O told Congress shortly before the document was published that the government is aiming for public debt to "remain on a stable and sustainable path."
That includes limiting the total foreign debt ceiling to $5.5 billion.
Mexico's oil prices, meanwhile, were seen averaging $68.70 per barrel in 2023 after hitting $93.60 this year
Oil output was expected to advance to an average of 1.872 million barrels per day (bpd) from some 1.835 million bpd in 2022, the figures showed.
Oil exports, however, were forecast to fall to an average of 784,000 bpd of oil in 2023, down from some 950,000 bpd this year, as the government seeks to refine more of its crude domestically to make the country more self-sufficient.
Mexico's peso currency was seen averaging 20.6 per dollar next year.
The budget forecast annual inflation would ease to 3.2% by the end of 2023, while the Bank of Mexico has predicted consumer prices will slow to around its 3% target in the first quarter of 2024.
The government also expects annual headline inflation to cool to 7.7% by December of this year, from more than 8.7% in the 12 months through August.
President Andres Manuel Lopez Obrador said on Tuesday the budget would not contain any tax increases.
The figures in the official budget were in line with a draft document seen by Reuters Wednesday.
($1 = 19.9434 Mexican pesos)
Mexico's finance minister Rogelio Ramirez de la O told Congress shortly before the document was published that the government is aiming for public debt to "remain on a stable and sustainable path."
That includes limiting the total foreign debt ceiling to $5.5 billion.
Mexico's oil prices, meanwhile, were seen averaging $68.70 per barrel in 2023 after hitting $93.60 this year
Oil output was expected to advance to an average of 1.872 million barrels per day (bpd) from some 1.835 million bpd in 2022, the figures showed.
Oil exports, however, were forecast to fall to an average of 784,000 bpd of oil in 2023, down from some 950,000 bpd this year, as the government seeks to refine more of its crude domestically to make the country more self-sufficient.
Mexico's peso currency was seen averaging 20.6 per dollar next year.
The budget forecast annual inflation would ease to 3.2% by the end of 2023, while the Bank of Mexico has predicted consumer prices will slow to around its 3% target in the first quarter of 2024.
The government also expects annual headline inflation to cool to 7.7% by December of this year, from more than 8.7% in the 12 months through August.
President Andres Manuel Lopez Obrador said on Tuesday the budget would not contain any tax increases.
The figures in the official budget were in line with a draft document seen by Reuters Wednesday.
($1 = 19.9434 Mexican pesos)
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
