Mexico lowers 2024 GDP growth forecast due to possible U.S. slowdown

Xinhua
01 Jun 2023, 13:30 GMT+10

MEXICO CITY, May 31 (Xinhua) -- The Central Bank of Mexico (Banxico) on Wednesday upgraded its economic growth forecast for 2023, but slightly lowered its projected growth for 2024 due to an expected slowdown in industrial activity in the United States.

In presenting the bank's Quarterly Inflation Report, Banxico governor Victoria Rodriguez said the GDP could expand by 2.3 percent this year, better than the 1.6-percent expansion previously forecast.

However, Rodriguez said Banxico expects the GDP to see just 1.6 percent growth in 2024, a drop from the 1.8-percent forecast a few months ago.

"The growth expectation for 2024 has been downgraded as a result of lower growth expected in industrial production in the United States," Rodriguez said.

According to the report, high inflation, while declining, still prevails globally and leads to a slowdown of the world economy.

The outlook for Mexico's economic growth is dimmed especially by the prospect of lower consumer demand should the United States experience a deep and long-lasting recession, the report said.

The central bank expects the National Consumer Price Index to reach 4.7 percent by the end of 2023 and then drop to 3.1 percent by the end of 2024.

Mexico's economy, the second largest in Latin America after Brazil, grew 3 percent in 2022, according to revised official figures.

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