[]
The Bank of Mexico (Banxico) announced a sharp cut in its growth forecast for the GDP for this year, lowering it from 2.4% to 1.5%, due to a slower consumption in the United States.
“External demand would continue to show a decline contribution to growth in Mexico during 2024 in anticipation of continued weakness in the manufacturing sector USA“, the bank said during the presentation of itsWithout the key boost from exports to USAdestination of 80% of Mexican goods that go abroad, Banxico expects the economy to grow thanks to domestic spending.
a quarterly report on inflation and the performance of the second largest economy in Latin America.
“National economic activity is going through a period of marked decline weakness“, the document stresses.
In this regard, he anticipated that private consumption and, to a lesser extent, private investment, will continue to expand.
But the contribution to the GDP from private sector investment would be lower than expected, the bank explained.
He added that although they continue to expect “positive effects from public spending” these will gradually decrease.
The governing board acknowledged that the economy will be in decline from the end of 2023.
Related
2024-09-03 10:40:34