The people working on the fiscal budget for next year - which has to be approved before 15 December - are presumably redoing the calculations using new assumptions for the main macroeconomic variables, the outlook for which has changed with the decision to cancel the Texcoco airport project. These new assumptions should include: i) a weaker currency (BBVA Bancomer is now projecting a year-end exchange rate of 20.30 pesos to the dollar, compared with 18.80 previously, an 8% depreciation, and the market is forecasting similar levels); ii) higher interest rates (in the past month rates on ten-year government bonds have also risen by about 10% to 8.9%, the highest rate since 2009 and the onset of the global financial crisis).
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