The draft budget gives "good signals" to markets, says Mexican employers
The draft budget for fiscal year 2019 of the government of Andrés Manuel López Obrador gives "good signals" to the markets, although it is a program based on social assistance that will not trigger the expected growth, said today the Business Coordinating Council (CCE) ).
"Although the Economic Package presented generates good signals to the markets, it is evident that its focus is mainly assistance, giving greater importance to social programs," the agency said in a newsletter.
This Saturday, the Minister of Finance, Carlos Urzúa, presented before the Chamber of Deputies the Economic Package for the fiscal year 2019, which includes an expenditure of 5.814 billion pesos (about 286.4 billion dollars) and priority programs such as the universal pension for older adults or the construction of the Mayan Train.
"Although it increases the investment with the programmed works, it is not foreseen that these are sufficient and are aimed at triggering a greater rate of growth," lamented the CCE.
For this body, which brings together important partners such as the Employers' Confederation of the Mexican Republic (Coparmex), the macroeconomic framework presented by the new government for the preparation of the Economic Package 2019, "is at first sight, realistic given the current situation. the Mexican economy. "
However, he criticized that in terms of economic growth what is established in the budget - an estimate of between 1.5% and 2.5% - moves away from the promises of the leftist leader, who "anticipated that in 2019 the economy (the country ) and would grow to 4%. "
"The forecasts that are made known throughout the six years indicate that the productive activity of Mexico will not have a greater momentum than it has been showing, which seems to indicate that more efforts will be required of those raised," the employer said.
After the presentation of the 2019 Economic Package this Saturday, now the Chamber of Deputies -with a majority of the National Regeneration Movement (Morena) of López Obrador- will have to debate the document and approve it before January 1st.