Economy 2 hours ago (Sep 08, 2022 08: 41PM ET)
Reuters. People sell corn grains at a public market in Ozumba de Alzate, State of Mexico, Mexico, May 24, 2022. REUTERS/Edgard Garrido TPX IMAGES OF YOUR DAY
By Isabel Woodford
MEXICO CITY (Reuters) -Mexican economic growth is likely to hit 3% in 2023, up from 2.4% this season, amid cooling inflation, the federal government’s budget document showed on Thursday, above the lender of Mexico’s growth forecast of just one 1.6% for the year ahead.
The budget forecast tax revenues of 4.6 trillion pesos ($231 billion) in 2023, and tight public spending, looking to bring public debt to 49.4% of gross domestic product in 2023.
Mexico’s finance minister Rogelio Ramirez de la O told Congress shortly prior to the document was published that the federal government is targeting public debt to “stick to a well balanced and sustainable path.”
Which includes limiting the full total foreign debt ceiling to $5.5 billion.
Mexico’s oil prices, meanwhile, were seen averaging $68.70 per barrel in 2023 after hitting $93.60 this season
Oil output was likely to advance to typically 1.872 million barrels each day (bpd) from some 1.835 million bpd in 2022, the figures showed.
Oil exports, however, were forecast to fall to typically 784,000 bpd of oil in 2023, down from some 950,000 bpd this season, because the government seeks to refine more of its crude domestically to help make the country more self-sufficient.
Mexico’s peso currency was seen averaging 20.6 per dollar next year.
The budget forecast annual inflation would ease to 3.2% by the finish of 2023, whilst the Bank of Mexico has predicted consumer prices will slow to around its 3% target in the initial quarter of 2024.
The federal government also expects annual headline inflation to cool to 7.7% by December of the year, from a lot more than 8.7% in the 12 months through August.
President Andres Manuel Lopez Obrador said on Tuesday the budget wouldn’t normally contain any tax increases.
The figures in the state budget were consistent with a draft document seen by Reuters Wednesday.
($1 = 19.9434 Mexican pesos)