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UPDATE 1-Mexico transition team says 2019 budget will consider airport payouts

Updated: 31-10-2018 10:08 IST
The 2019 budget proposal by the transition team of Mexico's president-elect will aim for a primary budget surplus of 0.8 percent of gross domestic product (GDP), the team said on Tuesday, which is around market expectations.

In a statement, the team added that it was aware of investor concerns over a plan to cancel a part-built new airport for Mexico City, but it would meet all obligations and the budget plan would consider them.

President-elect Andres Manuel Lopez Obrador's decision to cancel the $13 billion infrastructure project has put him in direct conflict with business elites, marking a rocky start to his plans to revive the economy.

After Monday's announcement, both the currency and stock market saw their worst one-day losses since the aftermath of the election of U.S. President Donald Trump in November 2016.

The transition team said on Tuesday that it would be talking to investors and ratings agencies in the coming days to explain how it will balance the fiscal impact. (Reporting by Stefanie Eschenbacher; Writing by Christine Murray; Editing by Michael Perry Editing by Clarence Fernandez)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)