Mexico’s 2023 budget plan calls for up to 3% economic growth


By Anthony Harup

MEXICO CITY — Mexico’s proposed federal budget for 2023 aims for a moderate increase in spending supported by economic growth of up to 3%, higher tax revenues and a slightly larger deficit than this year.

The 2023 budget plan submitted Thursday night to Congress calls for spending of about $400 billion and a budget deficit equivalent to 4.1% of gross domestic product, compared to a projected deficit of 3.8% at the end of this year.

The primary balance, which excludes debt repayments, is estimated at a deficit of 0.2% of GDP against a projected surplus of 0.1% of GDP by the end of this year.

The proposal aims to boost economic growth while maintaining social spending and keeping the public debt-to-GDP ratio stable at 49.4% by the end of next year, Finance Minister Rogelio Ramírez de la O told reporters. legislators.

He called it a “balanced, responsible and realistic” budget.

The budget plan calls for economic growth between 1.2% and 3%, year-end inflation of 3.2% and an average exchange rate of 20.60 pesos per US dollar.

The average price of oil is estimated at $68.70 per barrel, compared to $93.60 in 2022. Oil production is expected to increase to 1.87 Mb/d from 1.84 Mb/d this year, while exports of crude oil are expected to fall to 784,000 bpd. 950,000 bpd as Mexico refines more of its own oil.

Fiscal revenues are expected to increase by 0.8% in real terms, with the 15.5% decline in oil revenues offset by an increase of around 9.9% in tax revenues.

Write to Anthony Harrup at [email protected]


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