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Mexico enjoys political, economic stability, says president

Source: Xinhua| 2019-07-30 04:27:10|Editor: yan
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MEXICO CITY, July 29 (Xinhua) -- Mexico enjoys political and economic stability, Mexico's President Andres Manuel Lopez Obrador assured the public on Monday, following dismal economic growth figures.

"There is no risk whatsoever to the economy or to political stability. There is governance," Lopez Obrador said at his daily press conference.

"There is no recession, we are doing very well economically. And our country's economic and social situation is increasingly better," said the president, who took office on Dec. 1.

On Friday, the National Institute of Statistics and Geography (Inegi) released figures showing the economy registered zero growth in May compared to the previous month.

The report led investment bank JP Morgan to forecast an economic contraction of 0.5 percent in the year's second quarter, which would place Mexico in a "technical recession."

Inegi is expected to release its second quarter growth estimate on Wednesday.

"I am calm and optimistic, because we are fine," said Lopez Obrador.

His administration is currently preparing the 2020 budget, which has to be submitted to Congress for approval by Sept. 8.

The proposed budget will contain information on "how we are going to close the year in development and wellbeing, how we see 2020, and what our forecasts are for wages, growth, inflation and the exchange rate, in sum, all of the (economic) indicators," said the president.

Several agencies have recently downgraded their 2019 growth forecasts for Mexico, citing domestic and external factors.

Last week, the International Monetary Fund (IMF) reduced its forecast from 1.6 percent to 0.9 percent.

In 2018, Latin America's No. 2 economy, after Brazil, grew 2 percent.

Mexico's government also adjusted its growth projections to between 1.1 and 2.1 percent.

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