The Economy of Mexico will grow 3.3% in 2015

13.01.2015 By: El Economista

The World Bank (WB) estimates the strength of the Mexican economic recovery will allow a growth of the Gross Domestic Product (GDP) of 3.3% in 2015; the forecast is within the range estimated by the Secretariat of Finance and Public Credit, between 3.2 to 4.2 percent.
In the full annual document, Global Economic Prospects, the World Bank economists explain that implementation of the reforms will facilitate further growth of five tenths of a point to GDP for the next two years. This would lead to annual growth of 3.8% in 2016 and in the same proportion for 2017.
They advise that the implementation of the reforms could lead to the attraction of investors and mitigate the impact expected by the reversal of monetary policies in advanced economies.
They estimate that capital flows to emerging economies in 2015 will be approximately 5.5 percent of GDP, implying a slowdown from the estimated record for the previous year of 5.8 percent of GDP.
Banco BASE finds it difficult for the Mexican economy to grow above 3% in 2015. Due to the many reasons it entails at international level, the estimated Gross Domestic Product (GDP) will range between 1.8 and 2.3%.
Gabriela Siller, the director of Economic Analysis Banco BASE, explained that the main determinants of the projection are the low price of oil, which definitely will affect public finances; the high volatility in the exchange rate, which reflects on consumer confidence and investment decisions, and the imminent tax increase of the Federal Reserve.

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