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Fund warns Mexico to avoid dependence on oil

Thursday, November 29, 2012

Mexico must aim for a balanced budget in 2013 and boost tax revenue to avoid over-dependence on oil income, the International Monetary Fund said.

After its annual health check of Mexico's economy, the Fund said growth in Latin America's second-biggest economy was holding up due largely to strength in the United States, which buys almost 80 percent of Mexico's exports.

But the Fund said risks were to the downside, including from a sudden exodus of foreign investment, and it highlighted the need for sound management of public finances.

Source: Reuters