UPDATE 2-Mexico budget sees growth rising to 3.7 pct in 2015

viernes 5 de septiembre de 2014 20:58 GYT

(New throughout, adds more data, comment from finance minister)
    By Alexandra Alper and Noe Torres
    MEXICO CITY, Sept 5 (Reuters) - Mexican economic growth will
accelerate to 3.7 percent next year before averaging around 5
percent through 2020, lifted by reforms, the government's latest
budget plan forecast on Friday.
    The 4.676 trillion peso ($359 billion) budget for 2015,
which must be approved by mid-December, also stuck to a prior
deficit goal of 1.0 percent of gross domestic product (GDP),
narrowing from this year's expected 1.5 percent shortfall.
    President Enrique Pena Nieto has pushed a raft of reforms
through Congress to boost growth, ending a 75-year-old state oil
monopoly and shaking up a telecoms sector dominated by tycoon
Carlos Slim. The government also took steps to boost tax
    But growth has fallen short of forecasts, wobbling early in
2014 as a harsh winter hammered U.S. demand for Mexican exports
and the tax hikes in Mexico hit consumer spending.
    Presenting the budget, Finance Minister Luis Videgaray said
there would be plenty of support for the economy next year.
    "Thanks to resources that stem from (the) fiscal reform it's
possible to maintain a historically high level of productive
investment in 2015," he told Congress.
    Second-quarter Mexican growth beat expectations, lifted by a
pick-up in industrial activity and domestic demand, and the
government is betting on expansion of 2.7 percent in 2014.
    That figure is more than a percentage point below the
original growth forecast for 2014 and the prediction for next
year is also a point lower than previously estimated.
    In 2016, annual growth is seen reaching 4.9 percent, and
then holding at 5.2 percent through 2020, the budget says.
    Mexico's central bank on Friday kept interest rates on hold
at a record low of 3 percent, but highlighted signs that the
economy was recovering. 
    Inflation strayed above the central bank's 4 percent
tolerance ceiling in July and the first half of August, but
policymakers expect the uptick to be temporary.
    Videgaray saw inflation of 3 percent next year and a peso
 exchange rate at 13 per dollar, near current levels.
    The latest budget forecasts hinted at possible higher
borrowing in 2015, projecting the average nominal interest rate
paid on 28-day Cetes treasury bills would nudge up to 3.3
percent from an estimated 3.0 percent in 2014.
    The government expects to have to contend with lower oil
prices next year, forecasting a Mexican barrel will cost $82 on
average, down from $94 this year.
    Last week, state oil giant Pemex forecast its crude oil
output would average 2.4 million barrels per day (bpd) in 2015,
which could mark the first year that crude production at the
company has risen in over a decade. 
    Due to the energy reform, private oil companies will be able
to operate fields in Mexico on their own for the first time in

 (Additional reporting by Dave Graham and Christine Murray;
Editing by Simon Gardner, Diane Craft and David Gregorio)