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Mexico Unveils $25 Billion Stimulus Package for Flagging Economy

Arturo Herrera, Mexico's new Finance Minister, attends a news conference in Mexico City, July 9, 2019.

Mexico unveiled on Monday a stimulus package of over $25 billion to boost the country’s infrastructure, investment and private consumption as Latin America's second-largest economy teeters on the brink of a recession.

The announcement by Finance Minister Arturo Herrera came just days before Mexico's national statistics agency publishes second-quarter growth figures amid a discussion on whether the economy has slipped into recession.

The package includes credits, accelerated spending on goods and services and money tapped from an infrastructure fund, officials said.

"We have decided on actions that would mobilize 485 billion pesos ($25.5 billion) that would allow us to boost the creation of infrastructure projects, incentivize infrastructure investment and private consumption," Herrera said at a press conference.

Herrera said Mexico's government would accelerate spending this year and bring purchases of goods and services that had been scheduled for 2020 forward, actions which he added would have an immediate effect.

"Mexico is not immune (to global headwinds) and because of this we have been thinking about starting a program that aims to help the economy," Herrera said, adding that there were concerns about a slowdown in Mexico.

A recession would be a blow to President Andres Manuel Lopez Obrador, who has rejected the notion that the national economy is facing a deep contraction.