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Economy 56 minutes ago (Sep 08, 2022 08 41pm EST)
© Reuters. People sell corn kernels at a public market in Ozumba de Alzate, Mexico, on May 24, 2022. REUTERS/Edgard Garrido TPX Image of the Day
BY Isabel Woodford
MEXICO CITY (Reuters) – Federal government budget documents showed on Thursday, With cooling inflation, Mexico’s economic growth is expected to reach 3% in 2023, up from 2.4% this year and above the Bank of Mexico’s growth forecast of 1.6% for the year ahead.
Budget forecasts 2023 tax revenue of 4.6 trillion pesos ($231 billion), as well as austerity in public spending aimed at bringing public debt to 2023 as a share of GDP of 49.4%.
Mexican Finance Minister Rogelio Ramirez de la O told Congress shortly before the document was released that the government’s goal is to keep public debt “on a stable and sustainable path.”
This includes capping the total foreign debt at $5.5 billion.
Meanwhile, oil prices in xico are expected to average $68.70 per barrel in 2023 after hitting $93.60 per barrel this year
Oil production is expected to rise to an average of 1.872 million barrels per day (bpd) in 2022, around 1.835 million barrels per day (bpd), data show.
However, oil exports are expected to fall to 784,000 bpd in 2023 from about 950,000 bpd this year as the government seeks to refine more oil. Crude oil is produced domestically to make the country more self-sufficient.
The Mexican peso will average 20.6 against the US dollar next year.
The budget forecasts that annual inflation will slow to 3.2% by the end of 2023, while the Bank of Mexico forecasts that consumer prices will slow to around 3% in the first quarter of 2024 The goal.
The government also expects annual headline inflation to fall to 7.7% by December from over 8.7% in the 12 months to August.
President Andres Manuel Lopez Obrador said Tuesday that the budget will not include any tax increases.
The figures in the official budget are in line with a draft document seen by Reuters on Wednesday.
(1 USD=19.9434 MXN)