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16 Mar 2017, Radoslav Yordanov, EMIS Editor

Mexico to grow less than expected in 2017 due to cancelled FDI: Moody’s

Cancelled foreign investment caused by USA’s protectionist trade policies may cut Mexican GDP growth by up to 1% in 2017, CEEMartketWatch reported citing a forecast of Moody's LatAm Director Alfredo Coutiño.

The analyst explained that cancelled or delayed investments of USA firms will hinder Mexico’s economic growth by 0.5% this year, while non-USA firms’ decisions may rise this figure to 1%. Coutiño warned that this situation may worsen further in case the NAFTA renegotiation isn´t favourable for the country.

CEEMarketWatch, however, considers that such shock would come in 2018, as the formal negotiation will start later this year. This source forecasts that weaker investment flows will have negative impact over Mexico´s economic growth in 2017 and 2018.

Sign in and read the full article in emis.com Original source: CEEMarketWatch - Daily News