Mexico’s economy will grow at a rate of 2.4% annually in 2022, as predicted, the nation’s finance ministry stated on Friday, according to third-quarter economic activity indicators.

Despite a difficult international climate, the ministry stated in a statement that “the Mexican economy continues to thrive with healthy macroeconomic balances.”

The ministry said dynamic economic activity and a strong labor market led to “positive results” in tax collection, putting it on track to meet year-end estimates.

It also said economic activity was propelled by gross fixed investment, especially in national machinery and equipment and residential construction.

However, consumer prices kept rising due to factors such as high raw material prices and droughts and rains in various parts of the country.

Mexico’s public debt stood at 46.5% of its gross domestic product (GDP) by the end of the quarter and was on a “stable trajectory toward the end of the (current) administration,” the ministry said.

Refinancing strategies have managed to refinance an accumulated $78 billion, or 14% of Mexico’s total debt, according to the ministry.

Mexico’s public debt “continued on a stable and sustainable path (by the end of the quarter) as a result of prudent fiscal policy and the implementation of various debt management operations,” the ministry said.

The country’s fiscal deficit stood at 111.252 billion pesos ($5.62 billion) in September, the ministry said.

Mexico’s financial system also remained “well capitalized” and its credit market continued to show signs of recovery, the ministry said.