CORRECTED-UPDATE 1-Mexico preparing for low oil prices; crude output fall- finance minister
(Corrects day of week)
By Chris Vellacott and Sujata Rao
LONDON, March 4 (Reuters) - Falling oil production remains the most important risk to Mexico's economy this year and may force the government to tighten spending further into 2016, Mexican Finance Minister Luis Videgaray said on Wednesday.
Speaking to reporters at the London Stock Exchange, Videgaray said the risk was that oil production could fall further, following January's output decline which sent production to the lowest since mid-1990s.
"Certainly oil production remains the most important risk to (gross domestic product) output this year," Videgaray said.
Oil accounts for 13 percent of Mexico's exports and a third of budget revenues.
"We need to prepare for a scenario where the price of oil remains low and output of crude may not be as high as it was forecast... We need to prepare public finances to face such risks and that's a key reason why in January we did budget cuts," he said.
The government was braced for a situation "where (oil) production stays where it is and may even go lower", he added.
Videgaray said of the 2016 budget: "We aim to spend less and spend better." Continuación...