Mon, 05 Dec 2022

MEXICO CITY, Nov. 18 (Xinhua) -- Fitch Ratings on Friday affirmed Mexico's sovereign credit rating at BBB-, with a Stable Rating Outlook, citing the country's macroeconomic prudence, robust external finances and stable government debt/GDP ratio.

However, the agency warned, "External demand remains favorable in the near term, but the (Mexican) economy will face challenges from the expected slowdown in the U.S. economy" in mid-2023.

The Mexican economy will grow 2.5 percent in 2022, but will slow to 1.4 percent in 2023, it forecast.

Domestically, growth continues to be hampered by sluggish investment, while consumption is benefitting from steady improvement in the labor market and remittances, it added.

The agency said the Mexican government continues to show commitment to maintaining a stable debt/GDP ratio and a moderate fiscal deficit.

In addition, sustained growth in tax revenues due to administrative measures, such as fighting tax evasion, has strengthened Mexico's fiscal position, it said.

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