MEXICO CITY- Mexico is considering issuing sustainable bonds in Japan's market this year and seeks to develop its own peso-denominated debt to launch government paper, Deputy Finance Minister Gabriel Yorio said.

Mexico issued sustainable development goal (SDG) bonds in Europe for the first time in 2020 and now wants to do the same in the "samurai market," said Yorio in a podcast published on Wednesday by Grupo Financiero Banorte .

"We have been working and we want to develop the local sustainable debt market, denominated in pesos," said Yorio. "At some point this year we are going to place the first government or sovereign bonds denominated in pesos in a sustainable format."

The finance deputy minister added that the Mexican economy will continue to recover in 2022 with limitations such as demand and supply shocks and above-target inflation.

(Reporting by Ana Isabel Martinez and Miguel Angel Gutierrez; Writing by Valentine Hilaire; Editing by Anthony Esposito, Alexandra Hudson) ((Valentine.Hilaire@thomsonreuters.com;))