Mexico has financial and macroeconomic stability, as well as a solid credit profile, which will mean that the country’s credit rating will not be affected in the short term, according to Rodrigo Mariscal. chief economist and head of the Treasury’s Economic Planning Unit.
The official pointed out that the prudent fiscal policies that the public treasury has managed, as well as consistent planning, have contributed to maintaining an attractive profile for international rating agencies.
Recently, rating agencies such as Fitch, Moody’s and HR Ratings scissored the sovereign rating perspective.
Mariscal added that Mexico is at the appropriate rating level, however, he noted that it is “perhaps a little punished” in some indicators where the rating agencies showed concern.
He mentioned two other factors that would boost the credit rating: prudent and consistent fiscal policies, and institutional strength.
He assured that fiscal prudence will allow the country to reduce the budget deficit, currently at 5.9% to 3.5% by 2025, as proposed by the Treasury in the 2025 Economic Package.
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“Even with adverse shock scenarios, something that we analyze here in the Economic Planning Unit of the SHCP, the probability that in the medium term Mexico will exceed or be below the debt levels of American or Latin American economies,” He stated in a Grupo Financiero Banorte podcast.
He commented that the Treasury will probably maintain public finances with relatively low debt levels, despite the uncertainty surrounding the Mexican and global economy.
He said that although governance indicators are below the international average, Mexico has shown transparency in the management of its public finances.
“Thanks to transparency and consistent planning, we have built macroeconomic stability that offers certainty in the long term. The actions taken guarantee that the debt remains sustainable and that Mexico continues as an attractive destination for international investments,” he declared.
Regarding macroeconomic strength, he added that the economy continues to grow, but with a moderate deficit and inflation and an exchange rate that is functioning as a “financial shock absorber.”
He added that Mexico does not have a very large external debt that forces the public treasury to make any correction.
“In addition, we have the capacity historically and effectively to have adapted and absorbed quite strong shocks that occurred in the last 30 or 40 years,” he commented.
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