Wednesday, July 24, 2024

OECD cuts Mexico growth forecast by half a point; AMLO unfazed

There has been another reduction in Mexico’s growth forecast, this time by the Organization for Economic Cooperation and Development (OECD).

It cut its forecast by half a point for both this year and next, calling for a 2019 growth rate of 2% and 2.25% in 2020.

The OECD’s Interim Economic Outlook said on a positive note that strong remittances, an increase in the minimum wage and government plans to boost infrastructure investment and revive energy production should lift domestic demand.

Further declines in inflation would offer scope for monetary policy easing, the report said.

The OECD revised growth downwards in almost all G20 economies, citing high policy uncertainty, trade tensions and further erosion of business and consumer confidence.

Speaking on the revised forecast during his morning press conference, President López Obrador repeated his own, confident outlook, observing that macroeconomic figures are looking good and there is financial stability in the country.

“We are growing, jobs are being created, salaries are improving, there is well-being . . . . We are fine and in good shape.”

He said he would offer additional information next Monday.

Mexico News Daily

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