He Bank of Mexico (Banxico) did cuts its forecast for Gross domestic product (GDP) from 2024 and 2025; we tell you the reason.
Today, Wednesday, August 28, 2024, the central banking institution presented its Banxico Quarterly Report which corresponds to the months of April to June 2024.
Here, For the third consecutive quarter, the Bank of Mexico made cuts to the GDP for 2024 and 2025which lowers growth forecast for Mexican economy. What was your reason?
This is why the Bank of Mexico is cutting GDP for 2024 and 2025
In its Banxico Quarterly Report presented today, Wednesday, the Bank of Mexico made cuts to the GDP for the remainder of 2024 and 2025.
The Governor Victoria Rodriguez Eyebrow explained that the reason It is because The economy is in a period of weakness, which significantly reduced his prognosis.
Likewise, the slower growth in the United States and global economies compared to the previous quarter, influenced the Bank of Mexico to reduce its GDP growth forecast for 2024 and 2025.
National economic activity remained weak since the end of last year. Looking ahead, activity is expected to expand at a slower pace than previously anticipated, which could help moderate inflationary pressures.
Banxico Quarterly Report
What will GDP be like in 2024 and 2025 according to the Bank of Mexico?
Highlights that This is not the first time that the Bank of Mexico has made cuts to GDP for 2024 and 2025, since it is the third time in which the country’s growth rate is adjusted.
Thus, from a GDP that was around 2.4% announced in May, with this cut goes to 1.5%, almost one percentage point below.
In February 2024, the Bank of Mexico had forecast a GDP for 2024 and 2024 of 2.8%. However, with the new adjustment, the GDP is expected to grow by 2.8%. GDP growth range from 1.1% to 1.9%.
As regards the 2025, GDP went from 1.5% to 1.2%, so the growth interval for next year it will be between 0.4% y 2.0%.
The Bank of Mexico highlighted in its report that the Financial volatility in Mexicocaused mainly by idiosyncratic and global factors, contributed to a visible depreciation of the national currency.
“Thus, the outlook for inflation in the country was affected by various macroeconomic and financial factors,” he concluded.
2024-08-29 03:08:29