Mexico’s GDP rises from 50.4% to 51%

The Ministry of Finance and Public Credit (SHCP) has reported that Mexico's net public debt reached 51% of its Gross Domestic Product (GDP), which is above the previous level of 49.5% and higher than the 50.4% recorded in the preceding period.

The secretary noted that this net debt amounts to approximately US$1,124 billion in total, according to the Reports on the Economic Situation, Public Finances, and Public Debt.

This represents an 11.7% increase compared to the US$1,021 billion that the Ministry of Finance had previously reported.

Edgar Amador, the secretary, has stated that, even so, Mexico remains in a “solid fiscal position” and emphasizes that this level is 1.6% above what was projected for the period, which is below the average for Latin American economies.

Similarly, the minister stated that in the first half, the cost of debt decreased by 4.8% in real annual terms as a result of the asset management strategy favoring domestic markets—an initiative launched by the Ministry of Finance itself. He also noted that public debt has remained at a sustainable level due to the low level projected under a robust debt structure.

The report shows a year-over-year increase of 0.1% in total budget revenue, which amounts to more than US$245 billion. However, the 0.1% decline in non-oil revenue contrasts with the 0.4% increase in tax revenue and the 2.1% rise in oil revenue.

Finally, net budgetary spending has increased by 2.1%, bringing the total to US$278 billion. The figures, which were released following the release of the preliminary GDP estimate, showed a 1.5% increase, according to the National Institute of Statistics and Geography (INEGI).