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Fiscal discipline is a must

Despite presidential candidates consider fiscal discipline important, their campaign proposals jeopardize it
 Fiscal discipline is a must
File photo/NASTCO
25/06/2018
08:55
Mexico City
Newspaper Leader by EL UNIVERSAL
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For the sake of Mexico and the new generations, economic crisis is a subject barely touched upon in almost 25 years.

After the 1994-1995 crisis, which was the highest peak of economic crunches of all the six-year administration since the 70's, the groundwork was laid in order to avoid a similar scenario: sudden depreciation, growth downturn, international reserves contraction, and inflation rates increase.

With its comings and goings and challenges still ahead, the economy of our country has shown a relative stability with a controlled inflation, high level of our U.S. dollar reserves, and a sustained economic growth – although insufficient.

The autonomy of the Bank of Mexico and the presence of international markets have acted as counterweights when economic variables begin to move towards risky territories. In 2016, for instance, organisms and rating agencies began to raise red flags about the increase of debt regarding the gross domestic product. These warning signs received an official reply, stating there would be a course correction.

Now, when an administration is nearing its end and in December a new one begins, the minimum demand for whoever becomes the next Mexican president on July 1st is to keep our economic markers within the parameters of international recommendations.

Each candidate has made campaign proposals regarding economy which experts have analyzed and today EL UNIVERSAL publishes their findings.

The results aren't favorable. Despite candidates consider fiscal discipline important, their proposals have jeopardized it. All propose to offer economic benefits to the general population or several sectors and their first challenge would be to find the funds to make those promises a reality and do not unbalance the economy,  which would alter the main markers.

The country has problems which cannot be denied, such as insecurity, poverty, and inequality – most likely, our current biggest challenges – but the economy is not among them.

The more than two decades in which the exchange market, inflation, and level of reserves have maintained a relative stability must not be lost. Whoever wins the elections will have to commit to an exacting discipline – if not, we will all pay the price.

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