Categories: Economic News

Economic activity in the third quarter of Mexico points to an annual growth of 2.4% – Ministry of Finance

MEXICO CITY, Oct 28 (Reuters) – Indicators of economic activity in Mexico in the third quarter point to economic growth in line with forecasts for annual growth of 2.4 percent in 2022, the finance ministry said on Friday of the country.

“The Mexican economy continues to grow with solid macroeconomic balances despite a challenging international environment,” the ministry said in a statement.

The ministry said buoyant economic activity and a strong labor market led to “positive results” in tax collection, putting it on track to meet year-end estimates.

He also said economic activity was boosted by gross fixed investment, particularly in domestic machinery and equipment and residential construction.

However, consumer prices continued to rise due to factors such as high commodity prices and droughts and rains in different parts of the country.

Mexico’s public debt stood at 46.5 percent of its gross domestic product (GDP) at the end of the quarter and was on a “stable trajectory toward the end of the (current) administration,” the ministry said.

Refinancing strategies have managed to refinance a cumulative $78 billion, or 14% of Mexico’s total debt, according to the ministry.

Mexico’s public debt “continued on a stable and sustainable path (at the end of the quarter) as a result of prudent fiscal policy and the implementation of various debt management operations,” the ministry said.

The country’s fiscal deficit stood at 111.252 billion pesos ($5.62 billion) in September, the ministry said.

Mexico’s financial system also remained “well capitalized” and its credit market continued to show signs of recovery, the ministry said.

($1 = 19.8109 Mexican pesos)

Reporting by Kylie Madry; Editing by Anthony Esposito and David Gregorio

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee this accuracy. This article is for informational purposes only. It is not a request to make any exchange of goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for any loss and/or damage arising from the use of this publication.


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