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posted 2009-06-08
Crisis hits bottom floor
The Private Sector Specialists Survey managed by the Mexican Central Bank estimates an inflation rate of 4.41% with a negative GDP of 5.8% for 2009. The consensus is that the economic crisis bottom floor is reached in the second quarter of 2009.


Government Budget Hole

July 01, 2009. 14:11

The Mexican Finance Ministry SHCP reported a 750 million U.S. Dollars budget hole in the first 5 months of the year. The government revenue experienced a 6.9% fall in Jan-May compared to the last year; the fall is only a 2.3% if we consider the crude oil prices coverage securities. It is important to mention that the global crisis has affected the revenue collections of several nations; for example Beijing's finance bureau just reported a shortfall of 11.6% in China´s government revenue during the same period. However, this tendency must put the fiscal performance in the Mexican economic agenda.

The economic decline resulted in a fall in the revenue collections of: VAT (-20%), Import Duties (-19.9%), Income & Corporate Taxes (-12.8%), Liquor & Tobacco Tax (-11%).

On the other hand, the government expenditure grew a 13% during the same period: PEMEX Investment 4 billion U.S. Dollars (60%), Social Security System 1.65 billion U.S. Dollars (16%), Agriculture 1 billion U.S. Dollars (41%), Education 0.85 (10%), Fight Against Poverty 0.62 billion U.S. Dollars (41%).

Finally, the Mexican external debt rose by 1.7 billion U.S. Dollars (4.5%) from the end of 2008. The current balance at the end of May 2009 is 39.4 billion U.S. Dollars.

DoingBusinessInMexico Staff
Published: July 01, 2009. 14:11 | Last updated: July 01, 2009. 14:11
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