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BofA cuts Mexico 2022 GDP outlook to 1.5%

Tuesday, January 11, 2022
BofA cuts Mexico 2022 GDP outlook to 1.5% © Reuters. FILE PHOTO: Workers are seen in a building undergoing construction at Mexico City, Mexico January 30, 2020. REUTERS/Andres Martinez Casares

(Reuters) - BofA Securities on Tuesday slashed its 2022 forecast for Mexican gross domestic product growth to 1.5% from 2.5% previously, citing weaker than expected domestic economic activity.

BofA said it had set its Mexico growth forecast drastically lower than the 2.8% consensus due to a “conservative policy mix, high uncertainty and low growth expectations”, highlighting the COVID 19 situation in the country as well.

“Low growth is taking place despite strong US growth, which is helping the Mexican economy through trade and remittances," said Carlos Capistran, Canada and Mexico Economist at BofA Securities.

The forecast compares with the 2.77% growth expected by the country’s Central Bank based on private forecasts, which last month trimmed its forecast by 0.03 p.p. from the previous outlook.

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18-01-2022 11:30:56 (UTC+7)

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 EUR/JPY129.86↑ Sell
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 Adidas255.00↑ Sell
 Lufthansa7.135↑ Sell
 Siemens AG142.64↑ Sell
 Deutsche Bank AG11.960↑ Buy
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