Mexican government expects economy to grow in 2013

By IANS/EFE,

Mexico City : Mexico’s gross domestic product (GDP) is expected to grow 3.8 percent in 2013, with inflation running at 3 percent, the budget deficit at 2 percent and a negative balance of payments, authorities said, citing a report from the Finance and Public Credit Secretariat.


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The report, submitted as part of the process for setting goals under the Revenue and Budget Law, lays out the macroeconomic scenarios for next year, the Senate said in a statement.

Mexico’s GDP is expected to grow 3.5 percent this year, the Senate said.

Mexican crude oil is projected to sell at an average of $87.20 per barrel, allowing the country to surpass the petroleum revenue target set for this year by some 35.9 billion pesos (about $2.76 billion).

Budget revenues are expected to exceed the original 2012 projections by about 123.6 billion pesos (some $9.5 billion), thanks to an increase in non-oil revenues of some 60.4 billion pesos (about $4.64 billion).

The global economy should grow at a faster pace in 2013, but it will still face headwinds due to the European financial crisis, the Finance and Public Credit Secretariat said.

The global economy could also be affected by the fiscal situation in the US in the medium term, as well as by “an increase in the price of petroleum related to geopolitical events in the Middle East”, the secretariat said.

Another risk is a slowdown in the Chinese economy due to problems in the real estate market.

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