Mexico's Fiscal Future: Finance Minister Rules Out Immediate Reforms
Mexico's Finance Minister Edgar Amador dismissed the possibility of immediate fiscal reform, focusing instead on reducing tax evasion to increase revenue. President Claudia Sheinbaum is challenged with balancing her welfare and wage hike promises against the country's significant budget deficit and moderate economic growth forecasts amid trade uncertainties.
In a recent interview, Mexico's Finance Minister Edgar Amador firmly ruled out the possibility of enacting fiscal reforms in the short term. Instead, he suggested that the nation focus on combating tax evasion to increase tax revenues, a critical move given the current financial landscape.
President Claudia Sheinbaum, who took office last year, faces significant challenges as she contends with the largest budget deficit Mexico has seen since the 1980s. With promises to enhance welfare programs and raise the minimum wage, analysts are skeptical about balancing these commitments while reducing the deficit.
Further complicating the economic outlook are uncertainties in trade policy, notably due to recent U.S. tariffs. Amador acknowledged these challenges but remained optimistic about achieving positive growth in the current year. The finance ministry projects a GDP growth between 1.5% and 2.3% by 2025, alongside a fiscal deficit of 4% of GDP.
(With inputs from agencies.)
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