ECLAC predicts that Mexico’s GDP will grow less than Venezuela’s this year

The Economic Commission for Latin America and the Caribbean (ECLAC) cut its growth forecast for Mexico, which was still at 3.2% last December and now expects a 2.1% advance in the Gross Domestic Product (GDP) for this year.

This forecast is lower than the 3% expected by the World Bank and is far from the official estimate by the federal government, which is 4.1 percent.

In making an observation about the performance expected by the ECLAC For all the economies of the region, it is observed that Mexico will be one of the six least dynamic, just above Ecuador, which will register a growth of its GDP of 2.6%; of Chile, and its advance of 1.9% in GDP; from Haiti, which will have a performance of just 1.4%; Suriname, with an advance of 1.5% and Brazil, which will be the last in line with a growth of 0.5 percent.

According to the Preliminary Balance of the Latin American economies, even Venezuela will achieve a more dynamic increase, 3% this year.

In the presentation of the report, which this time is launched from Mexico by the Executive Secretary of ECLAC, Alicia Barcena, explains that this lower performance of the two regional economic giants will have an impact on the average regional GDP, which will barely reach 2.1 percent.

The official specified in a conference that this moderation of the economic dynamics will be the result of a lower impulse from the United States and China, which will limit the power of its recovery.

It also adds that, as a result of the inflationary impact, central banks will continue to increase their rates, and by tightening monetary policy, pressure is generated on domestic economic activity. In fact, it highlights the central banks of Mexico and Brazil, among the four emerging countries that have reacted with rate hikes to try to have an impact on softening inflation expectations.

The conference is currently taking place.

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