'We don't believe it's possible to generate a deficit of 5.1% of GDP this year'
Andrés Velasco, president of Asofondos. Photo: Courtesy - Asofondos
TL;DR
- Private pension funds question the government's 2026 financial plan, deeming the projected 5.1% GDP deficit unrealistic.
- Asofondos estimates the actual deficit could reach $140 trillion pesos due to undisclosed spending cuts and optimistic revenue forecasts.
- Concerns are raised about the lack of a clear plan for the projected 1.7% GDP spending reduction ($35 trillion pesos).
- Factors contributing to fiscal pressure include pension system issues, an aging population, and potential deficits in health and judicial rulings.
- The decree of devaluation, which affects insurance for incapacity or death, is a significant concern for workers' contributions.
- A realistic fiscal adjustment is needed to bring the deficit closer to 3% of GDP, requiring urgent and serious attention from the government and citizens.