Economics
IMF Calls on Mexico to Spend More to Speed Up Weak Recovery
- Mexico could add as much as 3.5% of GDP in near-term spending
- Lower rates can provide economic relief with ‘limited risk’
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The International Monetary Fund called on Mexico to implement short-term fiscal and monetary support to “limit the damage from the pandemic” and secure a faster economic recovery.
In a statement released after an official visit to the country, IMF staff said the Mexican government’s response to the coronavirus outbreak was “very modest,” and encouraged it to more than triple fiscal support to households, private businesses and health care. The country could boost spending by 2.5%-3.5% of gross domestic product to offset further economic fallout, it said.