Mexico Unveils $44 Billion Infrastructure Plan to Boost GDP

Mexico President Andres Manuel Lopez Obrador announced an infrastructure plan worth 859 billion pesos ($44 billion) that includes highways, railways, ports and airports as well as investments in telecommunications, with most of the capital coming from the private sector.

Lopez Obrador announced the plan for the first 147 projects alongside Carlos Salazar and Antonio del Valle, heads of two of the country’s biggest business chambers. The plan includes heavy spending from the private sector as the government continues to cut public spending to meet fiscal targets.

The plan comes just a day after economic data showed that the Mexican economy suffered a slight recession in the first half of the year. Analysts forecast Mexico’s gross domestic product to grow just 0.2% this year, the lowest since 2009 amid stagnant oil output, slumping construction and stalled services activity.