No Fiscal Consolidation Until 2013

BMI View: We now believe that Mexico will not experience fiscal consolidation until 2013 at the earliest, as growth slows and fiscal pressures build in the run-up to the 2012 presidential elections. While we still hold that the Partido Revolucionario Institucional to effect positive reforms to broaden Mexico's tax base if they do win next year, we do not expect a balanced budget for the duration of our 10 year forecast.

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