MEXICO CITY (Reuters) - In the run-up to the presentation of Mexico’s 2020 fiscal budget, Mexican Finance Minister Arturo Herrera said on Wednesday that fiscal policy will be conducted with prudence and discipline given the outlook for the global economy.
Market watchers, credit ratings agencies and investors will pour over the budget proposal when it is presented on Sunday for signs of how President Andres Manuel Lopez Obrador will continue to manage Latin America’s second largest economy.
“We have to be very careful, we have to be responsible in macroeconomic terms and we have to be fiscally disciplined,” Herrera said at an event in Mexico City.
Even the central bank, in its most recent statements, has underscored the importance that the 2020 budget package must “generate confidence.”
Herrera said the package will be “extraordinarily responsible” but left room for the primary budget surplus of 1% of gross domestic product, which the government is targeting in 2019, to be adjusted next year.
“We have to keep looking for ways to stabilize the debt trajectory, we have to have some level of primary surplus and we have to look for sources so that income continues to grow,” he said.
At the same event, Moody’s analyst Ariane Ortiz-Bollin said that investor confidence in Mexico has been affected by unpredictable policy decisions, adding to a wave of investor concerns during Lopez Obrador’s nine-month-old administration.
Reporting by Stefanie Eschenbacher; Writing by Anthony Esposito; Editing by Sandra Maler