Photo: Mexico's Economy
The government is maintaining its forecast for 4 percent gross domestic product (GDP) growth in 2014, based on the assumption that tax reforms are not implemented in Mexico, the Finance Secretariat said in a report to Congress.
The figures confirm the economic package submitted for 2013, maintaining the GDP growth projection at 3.5 percent.
“The economic activity and public finance estimates for 2013 and 2014 included in the document are based on the existing legal framework in our country at the time of its presentation,” the secretariat said.
The estimates in the report do not factor in the economic reforms proposed by President Enrique Peña Nieto or included in the Pact for Mexico, a series of goals laid out by the administration and the country’s political parties.
All the budget estimates in the report are based on an average export price for Mexican crude oil of $82.90 per barrel, as well as a balanced budget, and they exclude investment in state-owned oil giant Petroleos Mexicanos, or Pemex.
Pemex, the world’s No. 4 oil producer, is a major source of revenues for Mexico’s federal government.
Tax revenues are projected at 3.77 trillion pesos (about $306 billion) in 2014, down about 4.9 percent from the 2013 budget, with 33.4 percent of revenues coming from petroleum, the secretariat said.