MEXICO |
Cutting 2017 spending. On 1 April Mexico’s finance ministry (SHCP) released a new report announcing that it plans to cut public spending by M$175bn (US$10.081bn) in 2017 following the US$7.617bn cut announced on 17 February. According to the report, these cuts are to be implemented due to the current adverse international economic scenario. “Some risks arose or intensified in the last few months,” the SHCP report notes, adding that “the environment in 2016 is characterised by episodes of high volatility in the financial markets, important decreases in commodity prices, divergences in the monetary policies of advanced economies, uncertainties about the economic growth of emerging economies, and possible economic consequences related to the increase of geopolitical conflicts”. In addition, the report says that the 2016 budget identified efficiency opportunities in public expenditures and that “thanks to new motors of investment in infrastructure, it will be possible to implement this budget adjustment while maintaining an important flow of investment in strategic sectors”. The SHCP is projecting domestic economic growth in 2017 of between 2.6% and 3.6%.
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