The projections of the Ministry of Finance and Public Credit (SHCP) for 2024 estimate a budget deficit of 5.4 percent of the Gross Domestic Product (GDP), the highest in the last three decades.
In the midst of a larger fiscal deficit and presidential elections in 2024, executives from BlackRock Mexico and Scotiabank agree that the country will maintain economic stability and continue attracting foreign capital.
Sergio Méndez, general director of BlackRock Mexico, highlighted the fiscal discipline of the current government, but believes that a tax reform would be timely given the increase in public spending.
One of the last most important structural changes occurred with the coronavirus pandemic when there was also a boom in electronic commerce, the manager said in a conference.
“It is simply desirable to recognize that fiscal reforms, like monetary policies, have to be adapted to environments; we have had very important structural changes, starting with Covid-19 . I think that those things, the introduction of electronic commerce, all that needs to be incorporated, it would be very good if it were incorporated,” highlighted the BlackRock Mexico executive .
For next year, the projections of the Ministry of Finance and Public Credit (SHCP) estimate a budget deficit of 5.4 percent of the Gross Domestic Product (GDP), the highest in the last three decades. However, from BlackRock ‘s perspective , this deficit in Mexico “occurs when the government does not meet its revenue goal to meet its spending, but is at a manageable level.
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