Charts Of The Day: More Cause For Concern

While the cut to Mexico's 2009 budgetary expenditure plans has encouraged us to lower our fiscal deficit forecast slightly, we still anticipate a rapid widening of the nominal fiscal shortfall this year. The MXN35bn proposed reduction, announced by Finance Minister Augustín Carstens on May 29, seems to support our view that the fiscal coffers are likely to be hit hard in 2009, as rising unemployment levels and diminishing profits translate into lower tax income.

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