News Brief: IMF Staff Views Favorably Mexican Medium-Term Program
June 3, 1997
IMF Staff Views Favorably Mexican Medium-Term Program
Today, Claudio Loser, Director of the Western Hemisphere Department of the IMF, made the following statement in Mexico City after the announcement of Mexico’s medium-term program (PRONAFIDE):
"Mexico has made remarkable progress in reestablishing macroeconomic stability and resuming economic growth after a major recession in 1995. Today, the Mexican Government unveiled a medium-term program--the National Program to Finance Development (PRONAFIDE)--that outlines targets and policies for the period 1997-2000. The program targets an increase in real GDP averaging about 5 percent per year, a reduction in inflation to 7 1/2 percent, and an external current account deficit of around 3 percent of GDP by 2000. This program is ambitious, yet achievable. It demonstrates that the Mexican authorities are determined to continue with their efforts to consolidate macroeconomic stability and raise living standards. Its emphasis on fiscal consolidation and key structural reforms, particularly the restructuring of the banking system and further deregulation, is indispensable to generate and mobilize additional domestic savings. We particularly welcome the plan to strengthen and enhance the targeting of the social safety nets, thus better protecting the most vulnerable groups. The IMF staff will continue to work with the Mexican authorities to support the attainment of the program’s objectives."