Tuesday , May 30 2023

AMLO will inherit a stable economy from Peña, but it must continue its reforms: the IMF


The government that takes office will inherit a stable economy with strong macroeconomic pillars, but prospects will depend on the implementation of the program structural reforms he backed the previous administration, he said on Thursday International Monetary Fund (IMF) assessing Mexico in accordance with Article IV.

"The incoming administration will take over the economy with strong foundations and policies that have proven to be resistant to a complex external environment. The prospect depends on rigorous implementation of structural reforms, while guaranteeing macroeconomic stability," said the paper.

The IMF said that Mexico is still facing important taskshow to strengthen growth and reduce poverty and inequality, and further fight against corruption and crime.

At the same time, he added that uncertainty related to the global economic environment and the new administration's policy.

"Improving security and strengthening the rule of law are essential for reducing crime and promoting economic activity," the IMF said in Article IV, warning that companies could restrict their activities and cancel their investment plans in response to the situation. Weak security

Although IMF staff congratulated the Mexican government on the objective of achieving their fiscal consolidation objective, it issued a number of recommendations on public finance issues, including cutting costs.

"IMF directors have suggested cutting current spending and improving spending efficiency in order to create space for much-needed investment in infrastructure and other priorities," the document said.

In addition, the IMF stressed the need to increase revenues from non-oil products and warned against tax exemptions or reduced rates that could lead to distortions and tax reductions.

The financial organization also noted that strengthening the fiscal framework by establishing an independent fiscal council would increase the credibility of the administration's plans.

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