Fiscal space is compressed to 7%

03 MIN 00 SEC

Charlene Dominguez

Mexico City (June 16, 2025) - 5:00 a.m.

Fiscal space refers to the resources available to the government after addressing unavoidable expenses such as pensions or the financial cost of debt.

Fiscal space refers to the government's available resources after addressing unavoidable expenses such as pensions or the financial cost of debt. Credit: Bloomberg.

The government's fiscal space has been reduced from 47 percent of budget revenues in 2014 to 32 percent by 2024, according to data from BBVA Research and the Ministry of Finance and Public Credit (SHCP).