Economy

BofA cuts Mexico 2022 GDP outlook to 1.5%

BofA said it had set its Mexico growth forecast drastically lower due to a “conservative policy mix, high uncertainty, and low growth expectations”

Workers are seen in a building undergoing construction at Mexico City
Workers are seen in a building undergoing construction at Mexico City, Mexico January 30, 2020. Photo: REUTERS/Andres Martinez Casares/ File Photo

BofA 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.

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“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.

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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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