Mexico to slow pace of budget cuts in 2018 -finance minister

6/20/2017 Reuters

Mexican Finance Minister Jose Antonio Meade attends a conference marking the International Day of Family Remittances 2017 in Mexico City, Mexico June 16, 2017. REUTERS/Carlos Jasso

Mexico’s government should slow the pace of its budget cuts next year and it will not likely see a surplus from the central bank due to the recovery in the peso currency, the country’s finance minister said on Tuesday.

Mexico’s 2018 budget is likely to see a lower “adjustment” to public finances than in previous budgets, finance minister Jose Antonio Meade said in an interview on local radio.

He said Mexico would still meet a deficit target of 2.5 percent of gross domestic product by the end of 2018.

The collapse in global oil prices LCOc1 CLc1 in late 2014 forced Mexico to make sizeable cuts to the federal budget in the past couple of years, and Wall Street credit rating agencies last year warned they could cut Mexico’s debt rating.

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