Photo: Mexican economy
Economists last month lowered their forecast for Mexico’s 2014 growth to 2.56 percent, down from 2.65 percent in June, a central bank survey showed Friday.
In the Bank of Mexico’s July survey, those Mexican private-sector economists also downwardly revised their forecast for the country’s growth in 2015 from 3.87 percent to 3.85 percent, although they raised their 2016 forecast from 4.1 percent to 4.15 percent.
The survey results come just days after the International Monetary Fund slashed its forecast for Mexico’s 2014 growth to 2.4 percent, down from 3 percent in April.
The economists’ revised prediction coincides with warnings by the Bank of Mexico about the country’s weak performance in the first half of this year.
The central bank had already downwardly revised its forecast for Mexican growth, saying in May it expected the economy to expand by between 2.3 percent and 3.3 percent this year, down from an earlier prediction of between 3 percent and 4 percent growth.
The Finance Secretariat also cut its forecast for Mexico’s 2014 growth from 3.9 percent to 2.7 percent after the economy expanded by a lower-than-expected 1.8 percent in the first quarter.
Despite the first-quarter weakness, the secretariat said it was confident the economy would rebound in the second half of the year.
The economists that took part in the survey estimated that inflation will come in at 3.78 percent at the end of 2014, while the exchange rate will finish the year at 12.95 pesos to the dollar.
They also predicted a trade deficit of $4.04 billion for 2014, a current-account deficit of $23.12 billion and foreign direct investment of $25.14 billion.