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Economy & Business - July 2020

MEXICO: Growing concern over public debt levels

Mexico’s President Andrés Manuel López Obrador has repeatedly stated that his government is committed to maintaining sensible public finances to avoid increasing the national debt. However, the latest figures from the finance ministry (SHCP) show that the debt is growing –and not just as a result of  the US$1bn loan approved on 31 May by the World Bank to help Mexico face the coronavirus (Covid-19) pandemic. The public sector’s total net debt measure compiled by the SHCP reached 49.5% of GDP in May, an increase of 4.7 percentage points relative to the same month of 2019, the highest increase since the 2008-2009 global financial crisis when it reached 44.8% of GDP.

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