* According to forecasts from Moody’s Investors Service, Mexico’s economic growth will fall to 1.2% in 2019 from 2% in 2018. A Moody’s press release forecasts that the Mexican economy will continue to weaken – forcing the government led by President
Andrés Manuel López Obrador to implement further expenditure cuts to maintain fiscal rectitude. This will impact growth for banks and other insurance segments. It is anticipated that in addition to this predicted slump in economic growth, the alterations in Mexico’s energy policy and the mandate given to Mexico’s state-run oil company Pemex combined will impact Mexico’s medium-term fiscal outlook. Moody’s also predicts that Pemex will need financial support from the Mexican government in order to fund capital investment, to achieve production growth targets, and for its large debt, warning that this increases economic uncertainty and undermines market and investor confidence in Pemex.
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