U.S. economic trends, crude prices Mexico's main economic risks: gov't

Source: Xinhua| 2019-02-01 13:21:49|Editor: mym
Video PlayerClose

MEXICO CITY, Jan. 31 (Xinhua) -- U.S. economic trends and international crude prices are the main risk factors for Mexico's economy, the Mexican Finance Ministry said on Thursday.

Both could impact Mexico's revenues and growth, said Alejandro Gaytan, the head of the ministry's economic planning unit.

"We are very opportunely monitoring (both) to avoid these two risks," Gaytan told reporters during a briefing on the public sector results in the fourth quarter of 2018.

Last year, crude prices initially ranged between 60 and 70 U.S. dollars a barrel before dropping to 42 or 43 dollars a barrel, he said.

However, Mexico has hedged its 2019 oil exports at 55 U.S. dollars per barrel in case prices dip, he said.

"Volatility can have an impact, but we have oil hedging to cope," said Gaytan.

Mexico is among the world's major producers of oil and revenue from the sector is an important part of Mexico's national income.

Recent growth forecasts, including that for the United States, Mexico's main trade partner, are another concern.

"Since the global slowdown implies a decrease in growth in the United States, and that has an impact on Mexico, and on tax collection, we are constantly following monitoring the economic situation both worldwide and in Mexico," said Gaytan.

The ministry expects Mexico to see a 2-percent growth in 2019, the same as in 2018, according to preliminary data.