The Mexican Ministry of Finance announces that 2015 budget is cut in 0.7% of GDP

The Ministry of Finance said the the budget cut represents 2.6% of the total federal current expenditure, figure that is equivalent to 0.7% of GDP. Due to the fact that this budget cut is moderate, it is concentrated in current expenditure and public expenditure in the past had a limited effect on GDP´s growth, we expect that this fiscal measure has a limited impact in 2015 GDP´s. Note also that if the US economy keeps growing at a fast pace, this could ba a factor that may offset the effect of the budget cut in the Mexico´s 2015 GDP. Note also that this measure is positive in the sense that it will mitigate the adverse effect that low oil prices could have in the economy in 2016

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