“The amount of investment is not going to be as much as it will be in 2026, 2027, when we already have all the projects underway, but there will be work,” said the president about her government’s spending plans for next year, at his morning conference.
This confirms a fear expressed by the country’s industrialists. Last Monday, the president of the Confederation of Industrial Chambers (Concamin), Alejandro Malagón, expressed the sector’s concern about the government’s goal of reducing the public deficit next year; “We are concerned (…) that it means a reduction in public investment in infrastructure,” which is key to triggering private investment.
In the midst of an increase in spending to finish projects of her predecessor, such as a tourist train and a refinery in the southeast of the country, the president said two weeks ago that Mexico’s fiscal deficit at the end of 2024 will be less than 6% of the Gross Domestic Product (GDP), the highest in several decades.
Furthermore, Sheinbaum has noted several times that by 2025 the goal is to reduce it to around 3.5%, while analysts have said that it will be difficult to reduce it for next year, even though fiscal consolidation is expected.
The president highlighted the impact that the support distributed during the year since the impact of Hurricane Otis on the tourist city Acapulco has had on public spending, and reported that new works such as passenger train lines in the center of the country will begin next year. .
The government, he added, also plans to build several roads, carry out irrigation technology works and implement a popular housing plan with nearly 50,000 million pesos, which would begin in February.
With information from Reuters.
