On Wednesday August 31, Mexico’s central bank (Banxico) lowered its growth outlook due to economic weakness in the United States, and the bank’s governor warned that more protectionism could hurt an anemic global economy as U.S. Republican presidential candidate Donald Trump made a visit to Mexico.
In its quarterly inflation report, the central bank lowered its 2016 economic growth forecast to between 1.7 and 2.5 percent compared with a previous estimate of 2.0 to 3.0 percent.
The central bank’s governor, Agustin Carstens, said at a news conference in Mexico City that the bank lowered its forecast after weaker-than-expected growth in the second quarter in Mexico, Latin America’s No. 2 economy, and a sluggish U.S. economic expansion.
“We are facing a complex environment,” Carstens said. “Without a doubt, the economy of the United States has the biggest influence.”
Mexico sends nearly 80 percent of its exports to its northern neighbor.
Policymakers also said they now saw 2017 economic growth of between 2.0 and 3.0 percent versus a previous 2.3 to 3.3 percent.
Carstens said inflation would rise gradually this year to end 2016 close to the central bank’s 3 percent target. He said there was still no sign of widespread pressures on consumer prices from a deep slump in the peso.
Carstens refrained from directly answering questions related to the surprise visit of Trump to Mexico on Wednesday August 31, but he did take an indirect swipe at Trump’s threat to curtail trade with Mexico.
“There has been a tendency toward protectionism in many G20 countries. Due to slack in the world economy, it would be very unfortunate that this trend toward protectionism continues,” Carstens said.
(Reporting by Michael O’Boyle and Jean Luis Arce; Editing by Leslie Adler for Reuters)
more recommended stories
Mexico’s Polytechnic Institute and local company NC-Tech to create industrial training center 4.0
Mexico, Dec. 14 (Notimex).- The School.
MEXICO TO REGULATE ENTRY AT SOUTHERN BORDER
Mexico ’s top security official said.
Mexico has the potential to become the main supplier of cannabidiol (CBD) in the world
Cannabidiol is a raw material derived.
AMLO asks Mother Earth’s permission to build Maya Train project
Mexican president Andrés Manuel López Obrador.
Mexican model Vanessa Ponce de Leon wins Miss World 2018 beauty contest
A Mexican model and volunteer was.
Christmastime in Mexico is full of traditions
To say that Mexico is a.
Puerto Vallarta Wins 2018 Gay Cities ‘Fun in the Sun’ Award
Puerto Vallarta, Mexico – The warmth Puerto.
Battle between the US & Mexico over the US Dolphin Safe label comes to an end
More than a decade since Mexico.
Mexico will host international Solar Power Fair in 2019
Mexico will host one of the.
Fentanyl lab busted in Mexico City
The Attorney General’s Office (PGR) has.