Stable macroeconomic conditions--with 2023 real GDP growth over 3% on solid domestic demand and moderating inflation--set the stage for Mexico's national elections in June and a new administration coming to office in October. We assume the next government will table a 2025 budget that narrows this year's 5% government deficit. Therefore, we affirmed our 'BBB' long-term foreign currency and 'BBB+' long-term local currency sovereign credit ratings on Mexico. The stable outlook incorporates our expectations of cautious policy execution, with no major changes in policy amid this political cycle, and a solid external position. On Feb. 1, 2024, S&P Global Ratings affirmed its 'BBB' long-term foreign currency and 'BBB+' long-term local currency sovereign credit ratings on Mexico. The outlook remains stable.
