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Mexico needs a counter-cyclical fiscal policy; a fiscal council would help

Published on Thursday, August 15, 2019 | Updated on Friday, August 16, 2019

Mexico needs a counter-cyclical fiscal policy; a fiscal council would help

Considering the current circumstances of almost zero economic growth, there is no need to aim for a primary surplus similar to the one planned for this year (1% of GDP) in 2020. If properly reported, a smaller primary surplus may be welcomed by the markets.

Key points

  • Key points:
  • Undoubtedly, it is imperative that Mexico maintains fiscal discipline
  • The key to implementing such a policy is that it must be credible

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