MEXICO CITY: Mexico's finance ministry forecasts growth of 3.7 percent next year, above the 2.7 percent growth rate predicted for 2014, according to a budget plan submitted on Friday.
The 2015 budget also stuck to a prior deficit goal of 1.0 percent of gross domestic product, narrowing from this year's expected 1.5 percent deficit, according to the budget publication.
President Enrique Pena Nieto has pushed a raft of landmark reforms through congress this year aimed at boosting growth, but the economy wobbled early in 2014 as a harsh U.S. winter hammered American demand for Mexican factory exports and a tax hike dragged on consumer spending.
Data last month showed second-quarter growth beat expectations thanks to a pick up in industrial activity and domestic demand.
Speaking to congress on Friday, Finance Minister Luis Videgaray forecast inflation of 3 percent next year and a peso exchange rate at 13 per dollar - in line with current levels.
Inflation strayed above the central bank's 4 percent tolerance ceiling in July and the first half of August, but policymakers expect the uptick to be temporary.
The budget also expects oil prices at $82 per barrel in 2015, it added.
Mexico is the world's 10th-biggest crude producer, but it is forced to import much of its natural gas and gasoline due to insufficient domestic production.
An overhaul of the sector championed by Pena Nieto ended Pemex's 75-year monopoly and the company will now be able to enter into first-ever joint ventures with oil majors.
Private and foreign oil companies will also be able to operate fields on their own for the first time in decades.
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