The Financial Times reports Mexico’s central bank governor Agustín Carstens expects the country can maintain its 2.4-2.5 per cent growth rate in 2016, in spite of economic headwinds and Brexit-related fallout.
Matching last year’s growth of 2.5 per cent will not be easy for Mexico, battling a battered peso and inflationary pressures that last week prompted a surprise half-point rate rise.
Still, speaking at his office, he told the FT: “If subsequent [Brexit] developments are handled in an orderly, constructive fashion — that’s an important if — I think it [the impact] should be manageable.”
The Mexican peso has been in the line of fire. As the most liquid emerging market currency, it represents a convenient hedge and briefly touched an all-time low of just under 19.52 to the dollar on the UK referendum result. It rallied on the rate cut, but has since weakened again and is now trading at just above 18.6.
The US elections could pose even bigger risks if Republican Donald Trump, who wants a border wall and an end to US companies relocating to lower-cost Mexico, wins in November. “We have to be very cold-headed,” Mr Carstens said, noting “real gains of trade” in the bilateral US-Mexican relationship “that should be the leading consideration”.
For now, volatility looks set to continue — which can curb investors’ appetite to put money into Mexico, Mr Carstens said.
For complete Financial Times article, click here.
more recommended stories
Aztecs to take over Germany
The Linden Museum of the German.
“Andares” a play about indigenous people, will be presented in Campeche
Andares, a play that presents the.
Number of tourists in Valladolid increases during the summer holidays
With the start of the summer.
In July, the Yucatan will witness the Sun in Zenith and proximity of Mars
From July 18 to 20 ,.
López Obrador slashes his own salary and increases his popularity among the people of Mexico
Mexican President-elect Andres Manuel Lopez Obrador.
Rewards in exchange for donating plastic containers in Mérida
The modules of the pilot project.
Cozumel police protest mismanagement of funds by senior officers
Municipal police in Cozumel, Quintana Roo,.
Southwest Airlines to expand cargo business to Mexico
According to CNBC News, the avocado on.
Mérida hotels take measures against Influenza
The hotel and commerce sector of.
CICY scientists develop international biomimetic study on cocoyol fruit’s toughness
The Cocoyol or Coyol (Acrocomia Mexicana).