Incoming Mexican administration pledges to reduce budget deficit, as markets recover from shock

MEXICO CITY (AP) — Mexico’s treasury secretary pledged Tuesday to bring down the federal budget deficits in coming years, after the country suffered a partial meltdown in the currency and stock markets.

Finance Minister Rogelio Ramírez said the federal deficit will be cut from this year’s level of almost 6% of GDP, to around 3% in coming years.

The statement was an effort to calm markets after the Mexican peso dropped over 4% Monday against the U.S. dollar, and the Mexican stock exchange took a dive to close off 6%. Markets appeared to be recovering somewhat in early trading Tuesday.

But analysts said it would be difficult to achieve such a quick reduction.