“The Mexican economy is strong and shows no signs of vulnerability”: SHCP

Mexico’s economy is “strong and there are no signs of vulnerability.” In addition, “inflation is trending downward and the financial system is in a strong position,” said Deputy Minister of Finance and Public Credit (SHCP) Gabriel Yorio this Friday.

In a post published in X, Yorio explained that the Mexican economy:

It continues to exceed its historical average growth, growing 1.1% in the third quarter of 2023, and job creation exceeds historical numbers.

“This reflects a robust and expanding labor market,” the official said in his text.

In addition, he said that focusing on investment instead of consumption as the main driver of growth is an indicator of strengthening productive capacity and a “more resilient economy to external shocks.”

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He noted that “inflation is trending downward, a sign of macroeconomic stability,” and the financial system “is also in a strong position, with a well-capitalized banking sector and manageable levels of domestic lending.”

He explained that the floating exchange rate policy “enables greater adaptability and resilience to external fluctuations, as reflected in the appreciation of the peso under the current administration.”

Photo: Cuartoscuro

The Mexican currency ended the year with a record gain of nearly 13% against the dollar.

The Mexican currency ended the year with a record gain of nearly 13% against the dollar and became one of the best-performing emerging currencies.super heavyweightand largely explain the phenomenon of chain movement or “approximation”.

Yorio also said that international reserves reach historic highs They provide “significant protection against external shocks.”

“These factors together show that the Mexican economy has become more resilient and less susceptible to crises than in previous years,” he said.

Trade deficit has improved

The official noted that in terms of the trade deficit, the situation has improved significantly over the past 20 years.

For example, in 1994, the trade deficit was 3.3% of GDP, while as of the third quarter of 2023, the accumulated trade deficit is only 0.6% of GDP, with the non-oil balance showing a surplus.

“This indicates greater diversification and strength of foreign trade. For these reasons, the Mexican economy is the twelfth largest in the world,” he said. (EFE)

Photo: Cuartoscuro

Source: Aristegui Noticias