Mexico: Selected Issues

November 17, 2015

Preview Citation

Format: Chicago

Mexico: Selected Issues, (USA: International Monetary Fund, 2015) accessed September 19, 2024

Summary

This Selected Issues paper analyzes fiscal multipliers in Mexico. Estimates of fiscal multipliers––obtained from state-level spending––fall within 0.6–0.7 after accounting for dynamic effects. However, the size of multipliers varies with the output gap. The planned fiscal consolidation—under the estimated multipliers—is projected to subtract on average 0.5 percentage points from growth over 2015–20. However, there are offsetting effects. The positive growth impulse of lower costs on manufactured goods production is estimated to reach 0.5 percentage point in 2015 and 2016, largely offsetting the impact of fiscal consolidation on growth in the near term.

Subject: Bank credit, Credit, Excises, Fiscal councils, Fiscal policy, Money, Public debt, Taxes

Keywords: Bank credit, Caribbean, Companies Petróleos Mexicanos, CR, Credit, Europe, Excises, Fiscal councils, Fx intervention, FX intervention policy, Global, ISCR, Mexico, Mexico Real GDP growth, Program Announcement Dates, Risk spread, State real GDP growth

Publication Details

Pages:

84
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2015/314
Stock No:

1MEXEA2015003
ISBN:

9781513593432
ISSN:

1934-7685

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