Saturday, August 2, 2014

México: IMF Downgrades Country's Projected 2014 Growth

According to The Latin American Tribune, the IMF last month lowered their forecast for México’s 2014 growth to 2.56%, down from 2.65% in June, a Central Bank survey revealed on Friday (August 1).

In the Bank of México’s July survey, Mexican private-sector economists also downwardly revised their forecast for the country’s growth in 2015 from 3.87% to 3.85%, although they raised their 2016 forecast from 4.1% to 4.15%.

The survey results come just days after the IMF slashed its forecast for México’s 2014 growth to 2.4%, down from 3% in April.

COMMENT: The Finance Secretariat also cut its forecast for Mexico’s 2014 growth from 3.9% to 2.7% after the economy expanded by a lower-than-expected 1.8% in the first quarter, a considerable difference.

The economists that took part in the survey estimated that inflation will come in at 3.78% 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.