Mexico, Mar. 3 (Notimex) .- The Mexican economy maintains a permanent and robust growth rate, despite facing a complicated environment and uncertainty, said the head of the Ministry of Finance and Public Credit (SHCP, for its acronym in Spanish), José Antonio Meade Kuribreña.
In a radio interview, the official pointed out that the national economy faced complicated shocks such as falling oil prices and the oil platform, as well as a drop in US manufacturing, a weak environment of global growth.
“And even in that very difficult context, it has maintained a growth rate that has been quite permanent and robust, not what we want, not what we need, but with respect to the context, it is a performance that proves strength and solidity,” he said.
He commented that the peso shows an appreciation today regarding the dollar, after US Commerce Secretary Wilbur Ross spoke about the possibility of a good trade agreement with Mexico, which would have a positive effect on the Mexican currency and that is what the markets are collecting.
He explained that in the market there was concern and uncertainty due to the negotiation of the trade agreement with the United States, but as long as the doubts are cleared and the ways of preserving value in the relationship between the two countries are found it is foreseeable that the peso will be appreciated.”
Meade Kuribreña also said that although economic growth is estimated for the country this year, the budget has different elements that give it strength against those changes in the variables, such as oil price hedges and the stabilization fund of budget revenue.
“We have, for example, oil price coverage, and that allows us that if the price of oil falls below 42 dollars, between the coverage and the budget revenue stabilization fund, we could continue to support our economic package of this year, “he said.
He said that the stabilization fund has around 100 billion pesos to face a fall in budget revenues, resulting, for example, from lower economic dynamism.
In turn, there are variables that help, as a price of oil higher than budgeted. “The combination of the variables, and this has been proven in January and February, has allowed us to keep public revenues reasonably in line with what we expected, and therefore the expense had to be reasonably the one that was also budgeted “.
He commented that the drop in revenues from the Special Product and Services Tax (IEPS, for its acronym in Spanish) of 5.9 percent last January was due to the adjustment made to lessen the impact of the release of the gasoline prices.
“When we talk about the adjustment that occurred in the prices of gasolines: the exchange rate increases on the international price of oil and the only variable that the government had was precisely to adjust the IEPS.”
“Therefore, the collection, under the protection of this tax, was lower between January and will be very surely throughout the year, but it was an adjustment that we could face from the surpluses that were being generated,” he said.
Finally, regarding his interest in being the successor of Agustín Carstens as governor of the Bank of Mexico (Banxico, for its acronym in Spanish), the finance minister said that for now he is focused on meeting his current responsibility, without thinking about what follows.