Mexico government focused on sustainable public debt in 2023 budget

MEXICO CITY, Sept 8 (Reuters) – Mexican financial development is anticipated to hit 3% in 2023, up from 2.4% this yr, amid cooling inflation, the federal authorities’s price range doc confirmed on Thursday, above the Financial institution of Mexico’s development forecast of 1.6% for the approaching yr.

The price range forecast tax revenues of 4.6 trillion pesos ($231 billion) in 2023, and tight public spending, aiming to convey public debt to 49.4% of gross home product in 2023.

Mexico’s finance minister Rogelio Ramirez de la O advised Congress shortly earlier than the doc was revealed that the federal government is aiming for public debt to “stay on a steady and sustainable path.”

That features limiting the full overseas debt ceiling to $5.5 billion.

Mexico’s oil costs, in the meantime, had been seen averaging $68.70 per barrel in 2023 after hitting $93.60 this yr

Oil output was anticipated to advance to a mean of 1.872 million barrels per day (bpd) from some 1.835 million bpd in 2022, the figures confirmed.

Oil exports, nonetheless, had been forecast to fall to a mean of 784,000 bpd of oil in 2023, down from some 950,000 bpd this yr, as the federal government seeks to refine extra of its crude domestically to make the nation extra self-sufficient.

Mexico’s peso foreign money was seen averaging 20.6 per greenback subsequent yr.

The price range forecast annual inflation would ease to three.2% by the tip of 2023, whereas the Financial institution of Mexico has predicted shopper costs will gradual to round its 3% goal within the first quarter of 2024.

The federal government additionally expects annual headline inflation to chill to 7.7% by December of this yr, from greater than 8.7% within the 12 months via August. learn extra

President Andres Manuel Lopez Obrador mentioned on Tuesday the price range wouldn’t comprise any tax will increase.

The figures within the official price range had been in keeping with a draft doc seen by Reuters Wednesday. learn extra

($1 = 19.9434 Mexican pesos)

Reporting by Isabel Woodford, Anthony Esposito, Diego Ore and Adriana Barrera; enhancing by Richard Pullin

: .