Mexico sees slightly bigger fiscal gap from flu
MEXICO CITY (Reuters) - Mexico expects a slightly bigger than originally forecast fiscal deficit this year as it factors in government spending to help the economy bounce back from a flu outbreak that paralyzed key industries for nearly a week.
"It was expected to be about 1.8 percent (of gross domestic product) but it is going to be slightly higher, between 1.9 percent and 2.0 percent," Finance Minister Agustin Carstens told Televisa network.
The flu outbreak, which has killed at least 26 people in Mexico, prompted President Felipe Calderon to shut down factories, offices, restaurants and schools. On Wednesday, businesses were expected to slowly restart activity.
The halt could knock up to half a percentage point off Mexico's economic growth this year, Carstens predicted on Tuesday.
The government has promised tax relief that is seen costing the country a total of 17.4 billion pesos ($1.3 billion) and more than 10 billion pesos in emergency financing from Mexican development banks to lift affected companies.
(Reporting by Cyntia Barrera Diaz; Editing by Andrea Ricci)
