Mexico's budget draft shows that the government expects economic growth of at least 1.5% by 2025.
The Mexican government expects the economy to grow between 1.5% and 2.3 % this year. This is down from an earlier estimate of 2.0% - 3.0%. Mexico's economy is expected to enter a recession, but the growth forecast by the finance ministry is more optimistic than the estimates of the private sector or the central bank. The Finance Ministry forecasts economic growth between 1.5% and 2.5 % in 2026. Latin America's No. The economy of Latin America's No. 2 was hit by a deterioration in investor confidence in recent months, U.S.
Escondida copper output at BHP and Codelco is up in October.
Data from the copper commission Cochilco on Tuesday showed that Chile's state copper miner Codelco posted flat production in the month of October, compared with the same period last year, while BHP's Escondida mine, the largest copper mine in the country, saw its output increase by more than a fivefold. Codelco, which is the world's biggest copper producer and is trying to boost its declining production, reported a total production of 127.900 metric tonnes, unchanged from the previous year.
Moody's lowers Mexico's outlook to negative due to institutional weakness
Moody's Ratings lowered Mexico's outlook from stable to negative on Thursday. The major credit rating agency cited institutional and policy weakness that could undermine the economy, as well as government finances. Moody's said that the reform of the judiciary could be a threat to the economy and fiscal strength. In a press release, the company also mentioned "contingent liability" arising from Pemex, a heavily indebted oil company owned by the state. This could complicate government's financial statements.
S&P expects cautious economic policies in Mexico and possible US trade challenges
S&P Global Ratings stated on Tuesday that it expects Mexico will continue to maintain a cautious macroeconomic policy over the next two years. It also warned of possible challenges for Latin America's largest economy including trade with the United States. Joydeep Mukherji, Managing Director of Sovereign Ratings, stated that the trade relationship between Mexico & the United States is at risk due to potential new tariffs under Donald Trump's presidency and a revision in 2026 of the North American USMCA Free Trade Pact.
The stability council of Mexico says that the financial system in Mexico is robust and stable.
The Mexican Financial Stability Council believes that Latin America's number one economy's financial system is strong and resilient. According to a statement from the central bank on Friday, Mexico's No. 2 economy is resilient and solid, despite global growth being expected to be slightly lower than last year. The Council said that the Mexican banking industry's capital and liquid levels "far exceeded" regulatory minimums, and that the risks associated with the external sector’s peso denominated assets are considered limited.
Pemex Promised $7.3 Billion in Tax Relief
Mexico's government aims to give $7.3 billion in tax relief to heavily indebted state oil company Pemex, according to a document seen by Reuters on Thursday, in an effort to cool fears over its financial viability and the impact on the wider economy.Pemex, burdened by $106 billion of financial debt, is teetering on the brink of losing its investment-grade rating.That scenario could be disastrous for Pemex as investors whose mandates stipulate…
Mexico Working to Strengthen Pemex Finances
Mexico's finance ministry said on Monday that it will implement measures to strengthen the finances and boost the production of state oil firm Pemex, specifically by increasing the limit on deductions for costs related to extraction and exploration.That move will free up resources of some 11 billion pesos ($578 million) per year through 2024 for the "exclusive" use in Pemex capital expenditures for exploration and production, the ministry said in a statement.Petroleos Mexicanos, as the firm is formally known, has seen crude output drop for more
Pemex Announces 7 New Crude Finds
Mexican state oil firm Pemex said on Tuesday it has made seven new crude discoveries in the shallow waters of the Gulf of Mexico and said it could invest upward of $10 billion to develop six oil and gas fields.Pemex, which has been struggling with declining output for over a decade, said the seven finds at its Manik and Mulach fields could have proven, probable and possible reserves of 180 million barrels of oil equivalent.Pemex also said it forecast peak production 210,000 barrels per day (bpd) in the second half of 2020 at its Manik, Mulach,
Pemex Unit Fined $22 Mln by Competition Authority
Mexico's competition authority said on Tuesday that it has fined a unit of state-owned oil company Pemex for presenting an annual compliance report on antimonopoly measures in the recently opened fuel market a year after it was due.The Federal Commission for Economic Competition, or COFECE, fined Pemex's Industrial Transformation unit, responsible for a range of refining and logistical activities, 418.31 million pesos ($22.1 million) for the late report.COFECE said the report…
Pemex Posts $8.2 billion Net Loss in Second Quarter
Mexican state-owned oil company Pemex reported on Friday a 163.16 billion peso ($8.2 billion) net loss for the second-quarter, according to a filing with the Mexican stock exchange.That compares to a profit of 32.76 billion pesos in the year-ago period.Reporting by Anthony Esposito
NAFTA Talks Continue with Energy in Spotlight
Trade negotiators from Canada, the United States and Mexico have made headway on issues including energy, small businesses and telecommunications in talks to revamp the North American Free Trade Agreement (NAFTA), the head of a top business lobby said on Monday. "I think we've made a lot of progress," said Juan Pablo Castañon, head of the Consejo Coordinador Empresarial (CCE), which represented Mexico's private sector during the trade talks.
Pemex: Fuel Supply Guaranteed Despite Harvey
State-owned oil company Pemex said on Monday that Mexico's gasoline and diesel supplies were "guaranteed" despite Tropical Storm Harvey, which has forced the closure of Texan refineries that supply Latin American markets. "Fuel supply in the country is guaranteed as there are sufficient inventories of gasoline and diesel," Pemex said in a statement, without revealing how may days of inventories were available in the country. Pemex added that it has acted to safeguard its workers, as well as land and sea-based installations.
Pemex Eyeing Tie-ups for Hydrogen Plants at Refineries
Mexico's state oil company Pemex is planning to form alliances around hydrogen plants at its refineries, Pemex chief Jose Antonio Gonzalez Anaya said on Tuesday. In February, Pemex said it will partner with France's Air Liquide SA to operate an existing hydrogen plant and build a second one at its Tula refinery. Mexico has five more refineries. (Reporting by Anthony Esposito)
Chile Exports Electricity to Argentina for First Time
Chile begun selling electricity to neighboring Argentina for the first time ever on Friday, said local power producer AES Gener SA, which owns the transmission line used for the transfer. Last June, Chile's government authorized AES Gener, a local unit of U.S. power group AES Corp, to transfer electricity back and forth with neighboring Argentina through one of its transmission lines. AES Gener said integrating the power grids in Chile and Argentina will improve energy safety and optimize operating costs on both sides of the Andes.
BHP's Escondida Mine Cutting 2.4 pct of Workforce
Chile's Escondida, the world's biggest copper mine, will implement a new round of personnel cuts, equal to 2.4 percent of its current workforce as prices for the red metal continue to linger near multi-year lows. "Escondida is putting in place a plan to reduce the number of employees by 2.4 percent, which is equivalent to around 90 roles," a spokesman for Escondida's controller, global miner BHP Billiton , told Reuters. "That was in response to the continued deterioration of the copper market…
Peru Delays Bids for Country's Most Productive Oil Block
Peru will delay bidding for the rights to develop the country's largest oil block, which is located in the Amazon jungle, at the request of three companies involved in the process, the government said on Monday. Bidding could restart within two weeks. Argentine energy company Pluspetrol has operated oil block 1-AB, located in Peru's Amazon forest and also known as 192, since 2001, but its contract ends in August. The concession, in Peru's northern Loreto region…
Chile Mining Sector to Double Energy Demand by 2025
Chile's sprawling mining industry, responsible for around a third of global copper output, is set to nearly double its electricity use by 2025 as multibillion-dollar investments come to fruition, state copper commission Cochilco said on Wednesday. Top copper producer Chile has seen energy costs rise and electricity supply tighten in recent years as major power projects are delayed or suspended due to costly, drawn-out legal battles. Cochilco forecasts that the mining industry will require an additional 18…
Chile Says Enap Not Ruled out of New LNG Plant
Chile's energy minister Maximo Pacheco said on Thursday the government has not ruled out the participation of state oil company Empresa Nacional del Petroleo in the development of a new liquefied natural gas terminal. The government expects to make a decision on Enap's participation in the development of what would be Chile's third LNG regasification terminal by the end of 2015, Pacheco said. (Reporting by Rosalba O'Brien and Fabian Cambero; Writing by Anthony Esposito; Editing by James Dalgleish)
