Mexico government focused on sustainable public debt in 2023 budget

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MEXICO CITY — Mexican economic growth is expected to accelerate in 2023 to around 3% from some 2.4% this year as inflation cools, the federal government’s official 2023 budget document showed on Thursday.

The budget sees annual inflation easing to 3.2% by the end of 2023, in line with the Bank of Mexico’s prediction for the final quarter of next year.

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It also expects annual headline inflation to cool to 7.7% by December of this year, from more than 8.7% in the 12 months through August.

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Mexico’s peso currency was seen averaging 20.6 per dollar next year.

Oil output was seen advancing to an average of 1.872 million barrels per day (bpd) from some 1.835 million bpd in 2022, the figures showed.

Meanwhile, Mexico’s government will aim for public debt to “remain on a stable and sustainable path,” Mexico’s finance minister Rogelio Ramirez de la O told Congress in an address shortly before the document was made public.

The budget aims to bring public debt to 49.4% of gross domestic product in 2023, he said.

President Andres Manuel Lopez Obrador said on Tuesday the budget would not contain any tax increases.

The figures in the official budget were in line with a draft document seen by Reuters Wednesday. (Reporting by Isabel Woodford, Anthony Esposito, Diego Ore and Adriana Barrera; editing by Richard Pullin)

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