He explained that the public finances of the next administration will face immediate pressure due to the continuous support that the current government has provided to Pemex, and that it is expected to continue with the new presidency. He estimates that on average support for Pemex represents 1% of GDP.
“The government is going into debt to help Pemex in the medium term, without a longer-term vision, if this continues it will continue to be a pressure for the next administration,” warned Renzo Merino.
Greater pressures on public spending are also expected due to pension spending, which is greater than 4% of GDP and increases every year.
Likewise, another great challenge for the next six-year term is to consolidate a reform agenda, one especially focused on the generation of tax revenues and fiscal correction.
He highlighted that more resources and tools must be harnessed to make the most of the potential of nearshoring, especially in matters of energy, water availability and infrastructure “if there is political will to address these issues (in the next administration), it could be extended to fiscal issues.” , considered.