World Bank cuts 2017 growth forecast for Mexico 01/11/2017 | By Radoslav Yordanov, EMIS Editor

The reduction is motivated by the negative impact of the anti-trade policy of USA president-elect Donald Trump

The World Bank has reduced to 1.8% its growth forecast for Mexico this year. The institution lowered down its projection by a full percentage point due to the negative impact of the anti-trade policy of USA president-elect Donald Trump. The WB also revised down its growth forecast for 2018, from 3.0% to 2.5%.

The bank, however, also forecasted that the private demand and real wages in the country will recover in 2017. The WB also sees low CPI inflation and strong remittances’ inflow.

Furthermore, CEEMarketWatch consider that CPI inflation could be much higher than expected this year because of the revision of gasoline prices in the country at the end of 2016. This source underlined that weak consumer confidence following Trump’s victory, may have negative impact over the performance of local commerce industry.

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Original source: CEEMarketWatch - Daily News
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