Mexico forecasts growth bump from public-private investment plan
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A university student holds a Mexican flag in Ciudad Juarez, Mexico, September 11, 2024. REUTERS/Jose Luis Gonzalez
MEXICO CITY, Feb 3 (Reuters) - Mexico's government outlined a plan on Tuesday to spur 5.6 trillion pesos ($323 billion) in spending on infrastructure and other key areas in public-private partnerships through 2030, which officials said could boost growth above prior estimates as soon as this year.
Finance Minister Edgar Amador said 722 billion pesos of the total could be allocated to projects this year, helping the economy expand between 2.5% and 3%.
In its 2026 budget proposal presented in September, the finance ministry projected growth between 1.8% and 2.8% for the year.
The new outlook is also above analyst projections. A Mexico central bank poll of private sector analysts on Tuesday forecast 1.3% growth this year and 1.8% in 2027.
In 2025, according to preliminary data, growth was 0.7%.
Amador added that the goal was to guarantee state ownership and oversight while bringing in private capital to reduce risk.
President Claudia Sheinbaum, whose administration runs through 2030, said private partners would be selected through public bidding processes, and that the finance, economy and energy ministries would coordinate the projects.
The government will take majority control of any joint ventures, which are intended to span projects in energy, trains, highways, ports, healthcare, water, education and airports.
"This is good for the country because it will allow us to achieve greater development with equity, well-being, social justice and environmental protection," she said at her regular daily press conference.
($1 = 17.3157 Mexican pesos)
(Reporting by Ana Isabel Martinez, Raul Cortes, Iñigo Alexander and Brendan O'Boyle; Writing by Daina Beth Solomon; Editing by Emelia Sithole-Matarise)
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