May 24, 2024 12:03 am
2024 Draft Budget Shows Mexican Economy Expected to Grow Up to 3.5% | The Mighty 790 KFGO

According to a recently released report from Mexico’s finance ministry, the country’s economy is expected to experience steady growth in the coming years. The draft budget predicts that the Mexican economy will expand by 2.5% to 3.5% in 2021, with further growth projected at a rate of 2.0% to 3.0% in the following year, 2025. Inflation is expected to decrease to 3.8% this year, aligning with the central bank’s target of 3%, plus or minus one percentage point. By 2025, inflation is projected to fall even further to 3.3%, indicating a slowdown from the current growth rate of consumer prices seen in February.

The peso is forecasted to trade at approximately 17.8 pesos per dollar this year and weaken slightly to around 18.0 versus the U.S currency in four years time.

Crude oil production for this year is predicted at an average of around 1.85 million barrels per day, with a slight increase to around 1.86 million barrels per day in two years time, according to official data.

It’s worth noting that Pemex, Mexico’s state-owned oil company, pumped an average of just over one million barrels of crude per day in February, its lowest level since the mid-70s.

Pemex’s oil output has been steadily declining from its peak of over three million barrels per day two decades ago, impacting public finances significantly.

Crude exports are expected to reach around one million barrels per day this year and drop slightly by around ten thousand barrels per day by 2025.

Overall, these economic forecast projections are critical for lawmakers as they plan future spending decisions for Mexico.

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