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    Published on Tuesday, November 5, 2024 | Updated on Wednesday, November 6, 2024

    Mexico | Pemex contributes to a public spending above budget

    Summary

    The Historical Balance of Public Sector Borrowing Requirements (HBPSBR) was 49.3% of GDP at the end of the third quarter. We anticipate that this balance will be 50.8% by year-end.

    Key points

    • Key points:
    • Taking into account our GDP growth forecast of 1.0% for 2025 and debt servicing costs of 3.4% of GDP, our calculations show that the primary surplus would have to be 1.3% of GDP (a public deficit of 2.1% of GDP) to keep the HBPSBR at 50.8% by the end of 2025.
    • In our view, this type of fiscal consolidation could imply a significant downside risk to economic growth and the economic package to be released on November 15 should contain a credible and gradual fiscal consolidation plan that contributes to the stability of the HBPSBR (% of GDP) in the coming years.

    Geographies

    Topics

    Authors

    Arnulfo Rodríguez BBVA Research - Principal Economist

    Documents and files

    Report (PDF)

    Monitor-de-Finanzas-Publicas-al-3T24-nuevo-formato.pdf

    Spanish - November 5, 2024

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