Mexico GDP Rebounds 1.4% as Rising Debt Service Risks Growth - Mexico Business News
Mexico GDP Rebounds 1.4% as Rising Debt Service Risks Growth - Mexico Business News
Source: Mexico Business News
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DW NOTE
Mexico's growth rebound comes as debt service costs consume a rising share of government revenue — precisely the trap that forces fiscal consolidation when currencies weaken. The 1.4% expansion buys time, but the trajectory matters more: if debt service continues rising faster than GDP, the next external shock won't allow for counter-cyclical spending. Ask Argentina how that constraint feels when capital markets close.