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 January 30, 2016 - 1:26 AM EST
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Mexico's 2015 public-sector deficit equivalent to 3.5 pct. of GDP

Mexico City
, Jan 30 (EFE).-
public-sector deficit amounted to 637.63 billion pesos ($35.13 billion) in 2015, equivalent to 3.5 percent of the nation's gross domestic product, according to the national government, which also reported a 32.9 percent annual decline in oil revenues.

In its most recent quarterly report on

economy and public finances, the Finance and Public Credit Secretariat said that in 2015 public-sector budget revenues totaled 4.26 trillion pesos ($234.96 billion), up 4.2 percent in real terms from 2014.

Oil revenues, meanwhile, came in at 841.51 billion pesos ($46.37 billion), down 32.9 percent in real terms from the amount received in 2014.

"This result reflects the reduction in the dollar price of oil and natural gas (down 49.3 percent and 34.7 percent, respectively), as well as lower oil production (down 6.9 percent). These effects were partially offset by the exchange-rate depreciation," the secretariat said.

It said the peso continued to depreciate against the dollar in the fourth quarter of 2015 due to heightened expectations about an interest-rate hike by the

Federal Reserve and the Fed's eventual decision to raise its benchmark rate last month.

The persistent drop in global crude prices also sent the peso lower relative to the greenback.

At the end of December, the peso stood at 17.21 to the dollar, a 1.6 percent decline compared with its value (16.93 to the

currency) on Sept. 30.
economy continued to grow during the fourth quarter even amid a "complex and volatile" external situation that has extended into 2016, the secretariat said.

"Global volatility is primarily due to uncertainty with respect to a weakening of global growth, particularly on the part of

monetary policy and the drop in oil prices," it added. EFE


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Source: News (January 30, 2016 - 1:26 AM EST)

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