Pemex support pushes Mexico's fiscal deficit to 4.8%, debt up 6.7%
Financial support for Petróleos Mexicanos offset public spending cuts, driving the deficit above target and contributing to a 6.7% real increase in public debt during the first two years of President Claudia Sheinbaum's government.
By Diego Lozano · 8wMexico's fiscal deficit reached 4.8% in the first year of President Claudia Sheinbaum's government, missing the 3.9% target as public spending cuts were offset by financial support for Petróleos Mexicanos (Pemex), El Economista reports.
The Ministry of Finance and Public Credit (SHCP) reported that Mexico's public debt grew by 6.7% in real terms during the first two years of Sheinbaum's presidency, according to El Economista.
El Financiero reports that Mexico's sovereign credit rating has deteriorated significantly from investment grade (A) to levels comparable to speculative-grade debt due to financial support for Pemex. The cumulative 130 billion pesos in Pemex support exceeds the combined annual spending of Mexico's armed forces and security forces, El Financiero reports.
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