Mexico's central bank cuts economic growth forecast for 2019

10:37 | 28/02/2019 Global Economy

Mexico's Central Bank (Banxico) on Wednesday reduced its economic growth forecast for 2019 to a range between 1.1 and 2.1 percent from the previous projection of 1.7-2.7 percent.

Banxico also lowered its economic expectations for 2020 to a range between 1.7 and 2.7 percent, from 2.0-3.0 percent.

Banxico explained that the reduction for this year is due to various factors, such as a more marked loss of dynamism in global economic activity.

In the domestic sphere, during the second half of 2018, especially at the end of the year, a more pronounced slowdown was observed than estimate in the previous report, Banxico said in its latest report.

"This led to a lower level of GDP (gross domestic product) growth at the end of 2018, which in turn generated a lower base for growth in 2019," it added.

Banxico's report was published after the National Institute of Statistics and Geography reported on Monday that Mexico's GDP grew 2.0 percent in 2018, a figure slightly lower than that of 2.1 percent in 2017.

Various indicators of domestic demand at the end of 2018 suggest that the slowdown could continue at the beginning of 2019, according to Banxico.

In the past weeks, some financial organizations and institutions have cut their growth forecasts for Mexico due to domestic and external uncertainty.

According to estimates from the Mexican government, the country's economy could grow between 1.5 and 2.5 percent in 2019.

Theo Xinhua