Mexico draft budget sees economic growth up to 3%, inflation cooling

MEXICO CITY (Reuters) – The Mexican economy is seen expanding up to 3.0% both this year and in 2024 as consumer price inflation is expected to slow, according to a copy of the governments draft budget document seen by Reuters on Friday.

The finance ministry is set to present the 2024 budget to Congress on Friday.

The ministry estimates that Latin Americas second-biggest economy will grow between 2.2% and 3.0% this year, and between 1.6% and 3.0% in 2024, according to the document, as the country continues to claw back pandemic-led losses.

For 2023 the “lower end of the range was adjusted upwards due to the good performance of the domestic economy,” the document said.

Mexicos inflation rate by the end of this year is seen reaching 5.0%, and then cooling to 4.0% by the end of 2024.

The ministry also forecast the countrys crude oil export mix to average $66.60 per barrel this year, but then slipping to$56.30 per barrel next year, in estimates that are key to public finances since exports from state-owned oil company Pemex represent a major source of tax revenue for the government.

The ministry also estimated total crude output at 1.877 million barrels per day (bpd) for this year, mostly coming from Pemex operations, and then ticking up to 1.914 million bpd in 2024.

(Reporting by Anthony Esposito; Editing by David Alire Garcia)