Published on Friday, September 11, 2020

Mexico | The 2021 Economic Package: Opportunity for countercyclical policy

This week the Ministry of Finance released the fiscal package that he presented to Congress for next year. It is the third presented by this administration. I think it is positive that, after three fiscal packages, it can be confirmed that it is a government committed to maintaining fiscal balances.

Key points

  • Key points:
  • For this budget, unlike the previous two exercises, the assumptions used to design the budget are more optimistic than the market consensus
  • I think that, for credibility reasons, it would have been better for the Ministry to take assumptions closer to those of the market consensus
  • I believe that an opportunity is being missed to implement a counter-cyclical fiscal policy that helps the economy recover in a better way from the serious crisis that the country is going through as a result of the pandemic
  • An expansive fiscal policy could be accompanied by an announcement of a fiscal reform that begins to attack the chronic problems of low collection that Mexico has

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