Treasury Secretary said that the Mexican economy continues to grow despite external shocks

Treasury Secretary said that the Mexican economy continues to grow despite external shocks

Mexico City.- 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, said the Ministry of Finance and Public Credit (SHCP).

The country's public finance unit said the federal government has followed a strategy aimed at preserving macroeconomic stability and promoting the country's economic growth.

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

It has also allowed Mexico to continue growing despite the external shocks that the country has faced in recent years, with which it records an average advance of the Gross Domestic Product (GDP) of 2.4% per annum so far in this administration.

"In the absence of the strengthening of the macroeconomic framework and the implementation of structural reforms, there would have been a significant slowdown in the economy," he said in the Weekly Report of his Spokesperson.

He stressed that the level of international reserves has also contributed to the confidence shown by international markets in the country. complemented by a flexible line of credit with the International Monetary Fund for 88,000 million dollars and the line of credit with the United States Department of the Treasury for 9,000 million dollars.

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

Reported that economic activity in Mexico showed a recovery in the third quarter of 2018, after the slowdown that exhibited in the second quarter, since GDP showed a seasonally adjusted quarterly increase of 0.9 percent, and an annual increase of 2.6%, with figures without seasonal adjustment.

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

In terms of public finances, he said that in the third quarter of 2018, the main balance sheets were better than what was scheduled, which is explained by higher revenues than originally expected.

He indicated that in this period, the public balance presented a deficit of 311,200 million pesos, lower than the programmed deficit of 364,200 million pesos; the primary balance showed a surplus of 108,300 million pesos, an amount greater than that anticipated in the 72.0 billion program.

The Public Sector Financial Requirements (RFSP), the broadest measure in the Federal Public Sector's balance sheet, is in line with the goal of a deficit of 2.5% of GDP by 2018.

With this result, it is foreseen to continue with the decreasing trajectory of the Historical Balance of the RFSP and that at the end of the year they will be at 45.5% of the GDP, below the 46% of the GDP registered at the end of 2017.

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

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