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MEXICO CITY, Sept 8 (Reuters) – Mexico’s economic growth is expected to reach 3% in 2023, from 2.4% this year, amid slowing inflation, the federal government’s budget document said on Thursday. above the Bank of Mexico’s growth forecast of 1.6. % for the coming year.

The budget forecast tax revenues of 4.6 trillion pesos ($231 billion) in 2023 and tight public spending, aiming to reduce public debt to 49.4% of gross domestic product in 2023.

Mexican Finance Minister Rogelio Ramirez de la O told Congress shortly before the document was released that the government aimed to keep public debt “on a stable and sustainable path.”

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This includes limiting the total external debt ceiling to $5.5 billion.

Mexican oil prices, meanwhile, have averaged $68.70 a barrel in 2023 after hitting $93.60 this year.

Oil production is expected to average 1.872 million barrels per day (bpd) from around 1.835 million bpd in 2022, the figures show.

Oil exports, however, are expected to fall to an average of 784,000 bpd of oil in 2023, from some 950,000 bpd this year, as the government seeks to further refine its crude domestically to make the country more self-sufficient.

The Mexican peso averaged 20.6 to the dollar next year.

Budget-projected annual inflation would decline to 3.2% by the end of 2023, while the Bank of Mexico predicted consumer prices would slow to around its 3% target in the first quarter of 2024 .

The government also expects annual headline inflation to decline to 7.7% by December this year from over 8.7% in the 12 months to August. Read more

President Andres Manuel Lopez Obrador said Tuesday that the budget would contain no tax increases.

The official budget figures were in line with a draft document seen by Reuters on Wednesday. Read more

($1 = 19.9434 Mexican pesos)

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Reporting by Isabel Woodford, Anthony Esposito, Diego Ore and Adriana Barrera; edited by Richard Pullin

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