Fiscal risks to low growth for this year and 2023: Fitch

The fiscal risks for Mexico they are skewed downwards and it is possible that the higher revenues that the country will receive from higher pteroleum prices will be insufficient to reach the fiscal objective of 3% of the GDPwarned the rating agency Fitch.

In a special comment, they explained that “the persistence of poor economic performance puts the debt on a path of constant increase as a proportion of GDP”.

In fact, they estimate that Mexico’s debt will remain “generally stable” at around 48% of GDP. But by not having an internal force that drives the increaseit will put itself on a trajectory of steadily increasing debt.”

Regarding the preliminary guidelines of the budget for next year, they noted that spending will continue to be pressured by the increase in the cost of indebtedness as well as by the debt indexed to inflation. So he considers that the higher revenues from the oil trade will not be enough to compensate for these pressures and that of the government’s commitment to maintain the price of gasoline at stable levels.

Mexico’s rating at Fitch is the lowest among the agencies, corresponding to “BBB-/stable outlook) which is the lowest level of Investment Grade.

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