Mexico's Economic Outlook: Growth Projections and Fiscal Strategies Revealed

Mexico's government projects economic growth between 1.9% and 2.9% next year, according to a draft budget by its finance ministry. The forecast presents a more optimistic scenario compared to the central bank. The primary deficit is expected to decline while oil production sees a gradual increase over the years.

Mexico's government has unveiled its latest economic forecasts, projecting growth rates between 1.9% and 2.9% for the upcoming year. A draft budget from the country's finance ministry offers a more optimistic outlook compared to estimations by the central bank.

The Bank of Mexico recently predicted a more modest growth of 1.6% for this year, with expectations rising to 2.0% by 2027. The bank's caution is partly due to uncertainties surrounding the ongoing review of the U.S.-Mexico-Canada free trade pact. Concurrently, private sector analysts foresee GDP growth of 1.5% this year and 1.8% in 2027.

In terms of fiscal performance, Mexico plans for a primary deficit of 4.1% of GDP this year, which the finance ministry aims to reduce to 3.5% by 2027. Inflation targets and interest rates are also outlined, with oil production and peso projections being integral to the financial strategy.

(With inputs from agencies.)