Mexico's debt will average 63 percent of GDP in 2021, even with a 'conservative' budget: IMF

The International Monetary Fund has warned that with no change in fiscal policy, Mexico is incorporating risks of a weaker recovery

Mexico agreed General budget by 2021 “reserve” Without changing course in fiscal policy, he cautioned that the risk of a weaker recovery International Monetary Fund (IMF).

The IMF detailed it without Additional tax support, The financial contractions can be expected recovery slows down “The frequency and scope of which remain uncertain.”

when updating Public Finance Comptroller’s ReportAnd the agency’s public finance specialists predicted government debt Mexico Will close in 2021 2021 63 points of GDP, a level similar to what it was at the end of 2020.

International Monetary Fund

They estimated that DrMexico’s fiscal deficit It will equal 3.4 percent of GDP at the end of 2021, which will be lower than the level reached in 2020, which averaged 5.2 points of GDP.

Director of the Public Finance Department at the International Monetary Fund, Victor GasparHe explained that the financial responses that the vast majority of countries implemented in 2020 to save lives, Facilitating livelihoods, mitigating the effects of the epidemic, increasing public debt and the global deficit.

The International Monetary Fund assesses that Global public debt has reached 98% of GDP At the end of 2020, it was 14 points higher than the level at the beginning of last year which was 84 percent of the product.

He predicted that by maintaining the financial stimulus this year world debt It will reach 99.5% of GDP.

He recommended that countries put in place credible fiscal frameworks in the medium term, especially when Religion High and financing terms tight or at risk, but this will not be the case Mexico.

According to the International Monetary Fund, Lopez Obrador government Granting one of the most modest fiscal stimulus packages in 2020 equal to 0.7 points of GDP, close to that granted by Uganda.

Granted by both governments Financial support Least aggressive in the list of 97 countries.

Despite limited support for families and businesses in MexicoGovernment debt rose by 10 points of GDP during 2020, the year of the pandemic.

With information from López-Dóriga Digital