IMF adjusted downward: Mexico will grow 3.2% in 2015 – Freedom of Expression Yucatán

IMF adjusted downward: Mexico will grow 3.2% in 2015 – Freedom of Expression Yucatán

MEXICO CITY, 20 January.- The wave of cuts in Mexico growth estimate for 2015 is ticking. Now it was the turn of the International Monetary Fund (IMF) lowered its growth forecast for Mexico to 3.2% this year and 3.5% in 2016

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During October, the agency led by Christine Lagarde estimated a gross domestic product (GDP) of 3.5% in 2015 and 3.8% for 2016

Previously, the Secretariat of Finance and Public Credit (SHCP) reduced its estimate to 3.7% from 4.7%, the World Bank revised its estimate to 3.3% from 3.5% and the Bank of Mexico left its forecast range between 3 and 4% from 3.2 and 4.2%.

Christine Lagarde, managing directors of the IMF. (Reuters)

However, the Organisation for Economic Co-operation and Development (OECD ) has a more optimistic forecast for Mexico, which is 3.9%

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The IMF expected growth of 3.5% in 2015, largely due to a sustained recovery in the United States, the rebound in construction and position of demand policies

In this sense, the International Institute noted that the effect of structural reforms will affect the growth, however stressed that a potential risk to the Mexican economy is security, which has been a drag on growth

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With respect to global growth, the IMF cut its growth forecast for this year, because it happened to 3.5% from 3.8%, while for 2016 it placed its estimate by 3.7 % from 4%

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“These revisions reflect a reassessment of the prospects for China, Russia, the euro area and Japan, as well as a decline in activity in some major oil exporters due to the drastic decline in oil prices. United States is the only major economy whose growth projections have improved, “said

The institution said the main upside risk associated with increasing stimulus generated by lower oil prices, although the persistence of the shock of oil supply is uncertain

The downside risks are related to changes in sentiment and volatility of financial markets worldwide, especially in emerging market economies, the IMF highlighted

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As for the international financial markets, the organization said the risks related to market fluctuations and volatility bursts are still high

The body again reminded that there is an urgent need for structural reforms in many economies, advanced and emerging alike, however indicated that the priorities of macroeconomic policy are not the same. (Forbes.com.mx)