Mexico Economic Outlook
September 13, 2016Newly appointed Finance Minister José Antonio Meade presented the 2017 draft budget to Congress on 8 September. The message is clear: the government is willing to cut spending as much as necessary to consolidate Mexico’s weak fiscal position. It has proposed reducing the fiscal deficit from an expected 2.9% of GDP this year to 2.4% of GDP in 2017 and targets a primary surplus of 0.4% of GDP. To do so, it envisages a significant decrease in public spending. While the markets welcomed the proposed budget, risks of political turmoil have increased following the sudden resignation of former Finance Minister Luis Videgaray. Videgaray’s resignation represents the most high-profile casualty of the recent visit by the Republican candidate for the U.S. presidency Donald Trump and leaves President Enrique Peña Nieto without his most trusted advisor.
Mexico Economy Data
5 years of Mexico economic forecasts for more than 30 economic indicators.
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|Bond Yield||6.14||1.49 %||Sep 23|
|Exchange Rate||19.79||0.89 %||Sep 23|
|Stock Market||47,778||-0.41 %||Sep 23|
Mexico Economic Growth
September 13, 2016Indications that economic activity will slow in the second half of the year and that it could be exacerbated by policy tightening—both fiscal and monetary—prompted analysts to lower Mexico’s growth outlook. Forecasters expect the economy to expand 2.1% this year, which is down 0.2 percentage points from last month’s forecast. Next year, the economy is projected to increase 2.5%.
Mexico Economic News
September 21, 2016
GDP growth in Q2 virtually mirrored Q1’s result, according to data for aggregate demand and supply released by the National Statistics Institute.
September 12, 2016
The administration of President Enrique Peña Nieto has presented plans to ramp up the country’s two-year austerity drive in its 2017 budget, pledging more spending cuts and a return to a primary budget surplus for the first time since 2008.
September 8, 2016
In August, consumer prices rose 0.28% over the previous month, which followed a 0.26% increase in July and was virtually in line with the 0.27% rise the markets had expected.
September 6, 2016
Confidence among Mexican households worsened in August, reflecting a broad-based deterioration in economic sentiment.
September 1, 2016
Inflows of remittances slowed drastically in July following three months of positive growth.