(MENAFN) On the back of the ongoing plummet of oil prices and escalating uncertainties over China's economy, Mexico will cut nearly USD7.3 billion of its budget for this year, with most of the savings at state-oil firm Pemex.
The significant slash in expenditure represents 0.7 percent of GDP, and it was a natural result for the instable global financial markets, mainly impacted by the reasons mentioned earlier, plus the US Federal Reserve's interest rate hike.
As for Pemex, the company already had to reduce spending by 11.5pct last year, hence it reported losses of USD10.2bn over July-Sep period, and however the government is seriously considering injecting the suffering firm with fresh capital.
Moreover, the federal republic will immediately axe USD1.7 billion from public spending, while the world's 2nd largest non-publicly listed firm by total market value will most likely be cutting a total of USD5.5 billion of its budget.
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