Economics: Growth or Stability Dilemma

MEXICO - Report 14 Jul 2015 by Mauricio González and Ernesto Cervera
Executive Summary The most recent information regarding the evolution of public finance during 2015 (at the end of May) allows us to conclude that officials will have a complicated time administering it for the remainder of the year. Mexico continues to register growing shortfalls in non petroleum tax revenues, spending continues to grow – with no evidence to date of the spending cuts that officials announced in January – and the debt of state-owned productive enterprises has increased significantly, driving federal public sector financial costs higher. As a result of these factors the publ...

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