Banxico cuts economic growth forecast for 2021


Central bank expects growth of 5.4% from 6.2% previously

The Bank of Mexico lowered its forecast for economic growth in 2021 to 5.4% from 6.2% previously, citing an unexpected contraction in activity in the third quarter of the year.

Gross domestic product shrank 0.4% in the third quarter from the second quarter, interrupting the country’s recovery after four consecutive periods of growth.

In addition, Banxico revealed for the first time its estimates for 2023, in which GDP would register a growth of 2.7%.

The update of the estimates comes hours after the Organization for Economic Cooperation and Development (OECD) also adjusted its GDP outlook down to 5.9%, from the previous 6.3%.

Regarding inflation, the central bank foresees that in the fourth quarter of the year it will average 6.8% and converge to the goal of 3% until the third quarter of 2022.

Source: El CEO

Mexico Daily Post