Fiscal policy in Mexico, encouraging: Lagarde – The Day online

Washington. The managing director of the IMF, Christine Lagarde, said today encouraged by the decision of the financial authorities of Mexico to maintain the current fiscal policy and offered the support of the institution.

Lagarde also acknowledged the progress of the structural reform process, as promoters of economic growth, but he recalled the size of the challenge and the task ahead for the government of president Enrique Peña Nieto.

"Clearly, Mexico has led some of the older reforms that were not implemented for many years, whether in education, in telecommunications, oil sector, access, new licenses, that is a massive range of reforms," he said.

At a press conference of the Financial Committee of the International Monetary Fund (IMF), at the close of the work of its autumn meeting, Lagarde indicated that at this time Mexico is faced with a situation such as that faced by other developing economies.

"One of the reasons that people have referred to the fact that there is low growth that has been maintained for a long time benefiting the few, it is because it is something that can be applied in a general way," he said.

This has been particularly the case for commodity-exporting countries, which can be a blessing or a curse, he said, and those in front of the current panorama should look for ways to diversify their economies and compensate for the loss of income.

Lagarde said she was encouraged that in the case of Mexico, "fiscal policies will continue properly under the new leadership of José Antonio Meade", newly appointed as secretary of Finance and Public Credit.

The IMF projects that Mexico will grow at a rate of 2.1 percent of gross domestic product (GDP) this year, to rebound slightly to 2.3 percent in 2017, under a current scenario of uncertainty and volatility from political events such as elections in the united States, which alluded in a general way.

"Clearly the country is also concerned about the contagion effect that will result from decisions outside, and that’s another reason for us to continue to support our members and be attentive to spillover effects of monetary decisions to include others," he said.