Sheinbaum Predicts Mexico's Fiscal Deficit Will Not Exceed 6% in 2024

President Claudia Sheinbaum stated on Thursday that Mexico's fiscal deficit will be below 6% of Gross Domestic Product (GDP) by the end of the year. She also noted that by 2025, the goal is to reduce this to approximately 3.5%.

According to projections from the Secretary of Finance, this deficit could close at 5.9%, which represents the highest level in several decades, largely attributed to public spending on significant infrastructure projects initiated by the previous administration. However, analysts have mentioned that it will be challenging to reduce this deficit for the coming year, although an improvement in fiscal consolidation is expected.

Keeping the fiscal deficit under control is crucial for a country's economic stability. It's encouraging to see ambitious goals, but the effective implementation of fiscal policies that promote growth and investment will be essential to achieve these reduction targets without compromising economic progress.