The unemployment rate has fallen to 2.7% and the country is expected to meet its fiscal targets by 2023, he adds.
The IMF expects that the containment of spending will compensate for the lower tax collection, especially VAT, which would generate a deficit of 3.9% of GDP. “This should lead to a decrease in public sector gross debt” to 52.7% of GDP in 2023.
The banking sector has “a solid capital position” and international reserves remain at adequate levels, the organization notes.
But the IMF estimates that for sustainable and inclusive growth, the country will have to carry out structural reforms.
It warns against “an unnecessarily procyclical short-term fiscal stance” and emphasizes that Mexico needs “decisive measures in 2025 and beyond to preserve fiscal sustainability in the medium term.”
Looking to the future, the organization calls on you to “increase non-oil revenues”, which remain below those of Latin American countries and the Organization for Economic Cooperation and Development (OECD) and pointed out that “greater space fiscal will create room for targeted social spending and investment in infrastructure.”
Directors applaud that Mexico “volunteered” to conduct an assessment of the transnational aspects of corruption.
Even so, they consider it necessary to “address pending gaps in the framework for the prevention of money laundering and financing of terrorism” and improve collaboration between the different organizations to achieve this.
Finally, they recommend that the Latin American country promote renewable energy sources with low carbon emissions because in the long term there is a risk of a reduction in global demand for hydrocarbons.