The Mexican government is already taking action to slow the speed at which debt as a percent of GDP is growing, with the aim of eventually reversing the trend. Mexico’s proposed 2017 budget calls for an overall spending cut of approximately 1.7 percent of GDP and has a primary surplus of 0.4 percent of GDP. The budget calls for large cuts to state-owned energy company Pemex, public funding for states, national-level ministries and government-sponsored support programs.
For more in-depth analysis on Mexico’s strategy to deal with its debt, its relative stability compared to the rest of the world and how its ties to other countries can affect the economy’s future, check out our recent Deep Dive.
The Geopolitics of the American President