Published on Friday, February 4, 2022

Mexico | Higher discretionary spending to reactivate the economy

In December 2021 the historic balance of public sector borrowing requirements (HBPSBR) was 50.3% vs. 51.7% of GDP in December 2020. The reduction in such balance was due to the fall of 1.6 percentage points of GDP in the external debt component. In contrast, the domestic debt element increased by 0.2 percentage points.

Key points

  • Key points:
  • During 2021 the primary balance was MXN -71,914 million, a figure that compares unfavorably to the target of MXN 6,205 million for such balance in 2021
  • Higher discretionary spending to incentivize the economic reactivation had an unfavorable impact on the primary balance of 2021
  • Nevertheless, the primary balance deficit stood at 0.3% of GDP as a result of fiscal discipline

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