Image credits: dom
/
News Article

2023 Economic Package Includes More Features to Fight Inflation

By Sofía Hanna | Mon, 10/03/2022 - 18:55

Mexico’s Minister of Finance, Rogelio Ramírez de la O, presented a plan to fight inflation that would ask business people, food producers and retailers to maintain their prices until Feb. 28, 2023. This addition aims to extend the Anti-Inflation and Deficiency Package (PACIC), leaving the 24 products of the basic food basket at MX$1,039 (US$51.87). If these measures lead to a decrease in inflation, the ministry will focus on increasing the country's minimum wage.

 

The 2023 Economic Package seeks to contribute to the population's well-being and protect the most vulnerable groups while stimulating economic growth and the creation of productive infrastructure to generate opportunities in regions that have historically been neglected, said Ramírez de la O in the IV Report for the 2023 Economic Package. The plan includes issuing a single license for companies to streamline procedures and increase the production of items such as corn, chicken and pork. The average price of the 24 products in the basic food basket is to be reduced by 8 percent. President Andrés Manuel López Obrador added that no pressure was put on businesses to participate in this new project and that support would be given to producers by lowering fertilizer prices, for example. This plan aims to benefit 2 million small producers. 

 

The companies participating in the agreement include:

  1. Antonio Suárez Gutiérrez, Tuny

  2. Leovy Carranza Beltrán, Grupo Pinsa-Dolores 

  3. Juan Antonio González Moreno, Grupo Gruma-Maseca 

  4. Altagracia Gómez Sierra, Grupo Minsa 

  5. Daniel Salazar Ferrer, Bachoco

  6. Isidro Ávila Lupercio, San Juan

  7. Jesús Vizcarra Calderón, Sukarne

  8. Arnulfo Ortiz, Grupo Gusi 

  9. José Zaga Mizrahi, Opormex

  10. Eugenio Caballero Sada, Sigma Alimentos

  11. Guilherme Loureiro y Javier Treviño, Walmart

  12. Ricardo Martín Bringas, Soriana

  13. Antonio Chedraui Obeso, Chedraui

  14. Alfonso Celis, Calvario

  15. Alfonso Rosales Wybo, Valle Verde

 

"The authority will suspend the review of any regulation that is considered to impede or make more expensive the importation and internment of food and its mobility within the country," said Ramírez de la O. "This includes tariffs, non-tariff foreign trade barriers and other requirements for its entry and national circulation."

 

The government projects to close the year with a primary surplus of 0.1 percent of GDP, which compares favorably with the deficit of 0.3 percent of GDP projected in the 2022 Package. In 2023, net budgetary spending is expected to reach MX$8.3 billion (US$414 million), a historical figure that is 11.6 percent higher annually in real terms compared to the forecast in the 2022 Package. 

 

The government is expected to maintain the fuel and electricity price containment policy established in December 2018. Additionally, it will freeze the highway rates concessioned to the National Infrastructure Fund (FONADIN) and Federal Ports and Bridges (CAPUFE) until Feb 28, 2023, to protect the purchasing power of Mexican families and prevent inflation from reaching 12 percent. Even with this subsidy, oil and non-oil public revenues are higher than the goals established in the 2022 Economic Package.

The data used in this article was sourced from:  
Hacienda, GOBMEX, MBN
Photo by:   dom, Unsplash
Sofía Hanna Sofía Hanna Journalist and Industry Analyst