“We have decided on actions that would mobilize 485 billion pesos (US$25.5 billion) that would allow us to boost the creation of infrastructure projects, incentivize infrastructure investment and private consumption,” Minister of Finance Arturo Herrera said at a press conference.
The package includes credits to help national production, accelerated spending on goods and services and money tapped from an infrastructure fund, the official added.
The announcement comes days before Mexico’s national statistics agency publishes second-quarter growth figures amid a debate on whether the economy has slipped into recession.
On Monday as well, Mexico’s President Andres Manuel Lopez Obrador said that the country has both economic and political stability, so it is not at risk of recession. Although there is no agreed-upon definition for a recession, one usually used is two consecutive quarters of contraction in gross domestic product.
Mexico’s GDP contracted by 0.2 percent quarter-on-quarter in the January-March period, and subsequent data showed the economy grew by 0.1 percent in April and was flat in May.
"The economic and social situation in our country is getting better and better," he stated in his daily press conference and added that he will meet with members of the Ministry of Finance to discuss economic progress in his administration.
As Lopez-Obrador, his Finance Minister said that the government would accelerate spending this year and bring purchases of goods and services that had been scheduled for 2020 forward, actions which will have an immediate effect in the country’s finances.