Mexico’s central bank said Friday that first-quarter economic data points to slower 2014 growth than what it had forecast several months ago, although it noted that some sectors had posted more favorable results.
In its latest monetary policy statement, the Bank of Mexico concluded that “downward risks remain for economic growth” but added that Mexico’s overall risk picture improved marginally.
Among the bright spots, it cited an increase in exports and said “incipient improvement” was observed in some consumption and private-investment indicators.
The bank, however, said that despite continued job growth in the first quarter, considerable slack remains in both the labor market and the economy as a whole.
The Finance Secretariat continues to predict 3.9 percent growth for this year, while the central bank said earlier this month it planned to lower its growth forecast, which currently stands at between 3 percent and 4 percent.
Separately, the Bank of Mexico said inflation was trending downward and is on course for a level “clearly below 4 percent,” adding that it was maintaining its benchmark interest rate at 3.5 percent.
It said that rate was “consistent with an inflation target of 3 percent,” with a range of plus or minus 1 percent.