Claudia Sheinbaum Discusses Public Finances with Fitch Ratings Executives
On Friday morning, President Claudia Sheinbaum met with Shelly Shetty, the CEO of Fitch Ratings, and her team to discuss the public finances of the country. During this conversation, the president talked about the performance of the Mexican economy, as well as public finances and the projects of her administration.
Present at the meeting was the Secretary of Finance, Rogelio Ramírez de la O, who had previously participated in the morning conference where details of the 2025 Economic Package were announced. The secretary emphasized that this package aims to achieve a balance between revenues and expenditures, thereby reducing the budget deficit from 5.9% of Gross Domestic Product (GDP) to 3.9%. This was presented as a sign that there is an effort to consolidate the country’s fiscal situation. This meeting comes after Moody's changed its outlook for Mexico to "negative" on November 14, due to a weakening in policy formulation that could impact the country’s fiscal and economic outcomes. In this context, Fitch Ratings maintains Mexico's sovereign rating at BBB-, placing it on the brink of a potential default. The Treasury expects the Mexican economy to grow between 2% and 3% in 2025; a projection that some analysts consider optimistic, although the Secretary of Finance defended this figure, stating that the government cannot adjust its growth projections as frequently as private firms do. The deficit is expected to hold steady at 3.9% of expanded GDP, while the budget deficit will be 3.2% of GDP. Additionally, public debt is anticipated to reach 51.4% of GDP.
The meeting between President Sheinbaum and the Fitch Ratings executives highlights the importance of maintaining constant communication with rating agencies. An appropriate rating not only reflects solid public finances but also affects the international perception of investment in the country. The growth projection and deficit reduction measures are key to improving investor confidence, so there must be a clear and realistic approach to avoid surprises.
