Anaya expresses concern over peso drop, high debt loads

The leader of the National Action Party said that the Mexican economy has taken a "really worrying" path because instead of betting on investment, the PRI is repeating the formula of debt and taxes that it implemented during 70 years, with disastrous results for Mexicans."

Anaya said that by the end of the third quarter of 2015, Mexico's debt amounted to 45% of its GDP, ten points more than three years ago. (Photo: Archive/El Universal)
English 24/01/2016 14:13 Suzzete Alcántara Actualizada 14:14

Ricardo Anaya, leader of the National Action Party (PAN) said that it is unacceptable that the federal government "closes its eyes" to the depreciation of the peso against the dollar because causes severe exchange losses to businesses and reduces investments, job creation and economic growth.

"There is no doubt that the high price of the dollar is already affecting economic growth and job creation, and it is naive to think that this will not translate into a generalized price increase," he added.

Anaya said that the Mexican economy has taken a "really worrying" path because instead of betting on investment, the government of the Institutional Revolutionary Party (PRI) is repeating the formula of debt and taxes that it implemented during 70 years, with disastrous results for Mexicans.

He added that the high levels of indebtedness, the low oil prices and the collapse of the peso against the dollar, do not guarantee stability for the country and affect the welfare of Mexican families.

"It is urgent to cut current spending and invest more in public works, so that there is work and the country is productive. This is what the PAN did when it ruled Mexico, and thanks to this the country resisted the crisis," Anaya said in a statement.

He explained that according to figures from the Ministry of Finance and the National Statistics Institute (INEGI), the current administration has increased current spending by 6.8% -used for salaries, travel expenses, offices, vehicles or cell phones- while investment in the public sector has decreased 13.9% and spending in public works has been cut by 26.8%.

He added that by the end of the third quarter of 2015, Mexico's debt amounted to 45% of its GDP, ten points more than three years ago, when the current administration started.

"If things continue like this, Mexico will reach levels that will affect its creditworthiness,” Anaya explained.

Comentarios

 

Video