Mexico’s Finance Ministry Pushes Back Against The Economist’s Criticism

Mexico’s Finance Ministry has responded in English to The Economist after the British magazine questioned whether the country can continue to win over bond markets. The ministry said Mexico remains a solid sovereign debt issuer with investment-grade status and stable outlooks from seven credit-rating agencies.

The response, issued in a three-page statement posted on the ministry’s X account, marks the second time this year that Hacienda has challenged the magazine’s portrayal of Mexico’s economy. In March, it rejected an article titled “Mexico’s broken economy,” saying the evidence did not support the description of a “broken economy.”

The latest dispute centers on an article titled “Mexico is struggling to win over bond markets.” The magazine reported that Moody’s had downgraded Mexico’s government debt to a level just above speculative grade, or junk status. It also said S&P Global had warned it could do the same, while Fitch already rated Mexican bonds only within investment-grade territory.

The Economist cited borrowing costs as evidence of pressure in the markets. It said Mexico paid a 6.4% yield on 10-year dollar-denominated bonds, higher than several countries with speculative ratings, including Guatemala. It also reported a 9.3% cost for 10-year borrowing in pesos, above the two-year low of 8.5% recorded last October.

Hacienda argued that these conclusions relied on a selective and, in several respects, outdated reading of the data. The ministry said the article left out the full range of sovereign ratings, relevant cross-country spreads, the fiscal consolidation trajectory beyond 2024, newer investment and trade figures, and the design of recent fiscal measures.

According to the ministry, the broader record points to an issuer that retains investment-grade status across the ratings landscape. It also said Mexico’s relative risk premium has narrowed rather than widened, fiscal consolidation is advancing at a pace unseen in decades, and the external sector has reached record levels in areas the article described as contracting.

Hacienda set out six points in its defense. It highlighted a fiscal deficit of 4.3% of GDP and said the government is seeking to bring it down again to 4.1% during the current fiscal year.