Fitch ratings ratified this Thursday the credit rating Mexico V “BBW-“ with a “stable” forecast, although growth is observed budget deficit for him 2024.
“Mexico’s rating is supported by prudent macroeconomic policies, stable and strong external finances, and a government debt-to-GDP ratio that is projected to remain below the ‘BBB’ median,” the rating agency said in its report.
At first pandemic and the international oil price crisis oil, In March and April 2020, three major international rating agencies, Standard & Poor’s (S&), Fitch and Moody’sthey downgraded Mexico’s credit rating.
Fitch has since maintained its rating at BBB- and S& at BBB, but a year ago Moody’s downgraded its rating to Baa2 in the face of financial and economic trends that, as he explained at the time, were “consistently eroding” the country’s credit profile.
The rating agency predicted this Thursday that GDP Mexico will grow 3.4% this year 2023 after growth of 3.2% in 2022, although it is forecast to slow to 2.4% in 2024
Fitch, however, commented that it expects the government’s fiscal deficit to widen next year, which will also be affected by higher spending related to President elections June.
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“The agency forecasts that the broader deficit will contribute to increase in debt general government sector to GDP to 47.7% in 2024 from 44.9% this year and stable growth over the medium term, but expected to remain below the ‘BBB’ median (currently 56%) throughout the entire forecast horizon,” he emphasized.
However, he did not expect that “major” political turmoil during the election cycle could negatively impact growth prospects for 2024, and foresaw limited policy changes if the incumbent National Renaissance Movement (Morena)wins the elections.
In his view, the Mexican economy will continue to benefit from the entry of foreign companies – a phenomenon known as nicheshoring, and for the stability of population consumption.
(EFE)
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
