The private sector cuts Mexico's growth forecast to 5.59% for 2021

Mexico City, December 17 (EFE). The private sector lowered its growth forecast to 5.59% for Mexican gross domestic product for 2021 and raised inflation to 7.63%, the bank’s monthly survey revealed Friday. Mexico (Banxico) for professionals.

This is the third consecutive decline in economic growth estimates for this year, after a forecast of 5.65% in November and 6% in October, according to the average forecast of 37 domestic and foreign analysis groups received between December 8 and 13 (December). .

In this way, the private sector assures that the Mexican economy will recover in 2021 after the historic collapse of 8.2% in 2020 due to the coronavirus crisis, the worst downturn since the Great Depression.

But he expects that to be less than the official target of 6% projected by the Ministry of Finance.

Analysts consulted for the study kept the GDP forecast for 2022 unchanged the previous month at 2.79%.

The central bank survey also reflected a fresh rise in general inflation expectations for the end of 2021, which they now expect to be at 7.63% compared to the 7.20% projected in November and the 6.60% estimated in October.

This is more than double the central bank’s target, which is to keep it close to 3% annually.

The survey was published a day after Banxico raised its interest rate for the fifth time in a row, now to 5.5%, in the face of rising inflation, which reached a year-on-year rate in November of 7.37%, the highest in 20 years.

For 2022, the new forecast is for general inflation to close at 4.22%, a figure higher than the 4.12% that specialists had predicted the previous month. EFE

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