MEXICO.- The panorama of Mexico's economy is getting darker. President Enrique Peña Nieto's second State of the Union address revealed that the nation's public debt level has increased by 21% in the 21 months since his administration began, an increase of over 1.2 trillion pesos, to total over 7 trillion pesos worth of national public debt.
To put this in perspective, if we were to compare this to the total gross domestic value, 42% of it is debt. Comparatively, during Vicente Fox's administration public debt was 29%, and with Felipe Calderon it increased to 36%.
Private consultants have lowered growth forecasts for the country.
At the same time, the Bank of Mexico (Banxico) released the results of a survey conducted by private consultants in the private sector in Mexico and abroad, that also indicated a reduced confidence level in economic growth at 2.47%.
Amongst factors used to calculate this confidence level is the increased violence in the country per 22% of those polled, 19% polled cited the weakness of the internal market, and 13% cited new fiscal policies implemented by this administration at the beginning of fiscal year 2014.