Mexican President Andres Manuel Lopez Obrador sent Congress a 2020 budget plan that assumes a growth scenario many economists see as too optimistic.
Mexico’s economy will expand 1.5% to 2.5% in 2020, according to the proposal submitted by Finance Minister Arturo Herrera ahead of Sunday night’s deadline. Analysts in a Bloomberg survey on average see an expansion of 1.5%, with none expecting growth to exceed 1.9%, which is also the International Monetary Fund’s forecast in July.
The plan calls for a primary surplus, which excludes debt interest payments, that’s equivalent to 0.7% of gross domestic product. That compares to 1% expected for 2019. Investors have been awaiting the plan to check for fiscal slippage as AMLO, as the leftist is known, balances spending on social services, security and Petroleos Mexicanos against the constraints of a stalled economy.
“Overall, a relatively fair budget, but the assumptions on growth and…
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