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
Yucatán beekeepers to receive more and better support from state government
The Yucatan state government and apicultural.
AMLO orders end to corporate tax breaks in Mexico
MEXICO CITY, May 20 (Reuters) –.
Climate change improves production of habanero pepper in Yucatán
“Facing the climate change that prevails.
Google suspends business with Huawei after Trump blacklist
Alphabet Inc’s Google has suspended business.
On World Bee Day, actions are needed to Save the Bees
The United Nations designated May 20.
Morehouse College grads are surprised by a billionaire’s promise
Atlanta, GA (CNN) – Morehouse College.
Father of slain pregnant teen blames ‘anti-immigrant laws’ for delay in investigation
The father of a pregnant teenager found.
Trump ‘engaged in impeachable conduct’… GOP Rep. Justin Amash.
Justin Amash is the first GOP.
Los Cabos, Mexico from a tourist point of view (VIDEO)
Laurel and Brandon went on vacation.
Quintana Roo beaches threatened by smelly seaweed invasion
MEXICO CITY (AP) — Tourists looking.