Mexico Roundup: Emergency declaration, crypto agreement, fiscal stimulus

Termination of emergency declaration

The Mexican government on Thursday terminated the emergency declaration in Acapulco and Coyuca de Benítez, two of the cities affected by Hurricane Otis. The decree published in the official gazette of the Mexican federation, declared the end of the emergency declaration issued on October 26, after the heavy rains and strong winds that occurred in those cities. The statement in the official gazette stated, “Following article 10 of the guidelines, the Declaration of Emergency (Agreement Establishing the Term of the Emergency Situation) is concluded after the occurrence of severe rain and strong winds on October 24, 2023, in the municipalities of Acapulco de Juárez and Coyuca de Benítez in the state of Guerrero.”  

Crypto agreement

Mexico has signed an agreement to observe crypto assets to restrict tax evasion and ensure tax compliance. The agreement was also signed by other nations like Germany, France, Brazil, Chile, the United States, and the United Kingdom, among others. Gabriel Yorio, an official of the Latin American nation’s treasury is quoted by local media La Jornada saying, “This declaration establishes a united global front to monitor the dynamics of the crypto asset market, through the automatic exchange of information. Participating jurisdictions, including Mexico, plan to incorporate the Crypto Asset Report (CARF) into their national legislation, activating information-sharing agreements to begin in 2027.”

Elimination of fiscal stimulus on fuel

The Mexican Ministry of Finance and Public Credit on Friday announced through the official gazette of the federation that consumers will no longer enjoy fiscal stimulus for premium gasoline for the upcoming week of November 11 to 17, 2023. This directive comes after consumers of premium gasoline enjoyed the fiscal stimulus from the Mexican government for 142 consecutive weeks, local media channel El Debate reported. For this week Magna gasoline and premium fuel will receive a support of 0%, meaning consumers will have to pay 5.9195 pesos ($0.34) and 4.9987 pesos ($0.28) of special production tax respectively. However, diesel will have a fiscal stimulus of 25.25%, dropping from 41.33%, El Debate reported.

3.7% industrial production growth

The Mexican National Institute of Statistics and Geography (INEGI) on Friday reported that industrial production in Mexico has seen a growth percentage of 3.7% in the first three quarters of 2023. "Based on original figures in all areas, led by construction at 13.7% and the generation, transmission and distribution of electrical energy, water and gas supply at 3.3%. Followed by advances in mining at 2.3% and manufacturing industries at 1.5%," INEGI reported.

Drop in inflation

The Mexican National Institute of Statistics and Geography (INEGI) has reported that the Latin American nation recorded a drop in inflation for October. “Mexico's inflation has been decreasing; in October 2023, it was 4.26 per cent, despite a 0.38 per cent increase in the National Consumer Price Index (INPC) from the previous month, which linked nine months of decreases,” INEGI reported. Mexican Economic analyst, Marcos Novelo is quoted by local media Excelsior saying, “Although this month the surprise was downward, there are several elements that will pressure in the opposite direction in the immediate future."