Gov't Announces Harsh Austerity Measures in Mexico teleSUR
go to original February 19, 2016

It's a development that might surprise many people, but Mexico received more money from migrants living abroad last year than it got from selling its oil. That's according to Mexico's central bank. (CCTV America)

In a coordinated announcement this week, Mexico’s central bank head Agustin Carstens and Finance Minister Luis Videgaray announced new harsh economic measures that the government will take in order to weather the current economic situation.

The plans have been widely rejected by social movements, as nearly 60 million Mexicans live in abject poverty.

The move includes a public spending reduction of more than US$7.3 billion, equivalent to 0.7 percent of the gross domestic product, something that was called a “not a popular but necessary measure” by the two officials.

Mexico has been particularly affected by the international financial volatility that has seen the Mexican peso depreciated to a record low against the U.S. dollar in the past year.

The country, though not a major oil producer, is still dependent on income from crude. Mexico's state-owned oil company, Pemex, which generates funds that comprise around a fifth of the national budget, lost nearly US$10 billion in the third quarter last year.

Read the rest at teleSUR

Related: Governor of the Bank of Mexico Warns of Severe Economic Shock (teleSUR)

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