SHCP forecasts faster growth pace
Agency expects more dynamism by the end of 2014
THE NEWS
Recent indexes show that Mexico’s economic growth is accelerating and the trend is expected to consolidate in the following months, said the Treasury and Public Finance Secretariat (SHCP).
In its weekly report, the SHCP said that the expected industrial reactivation in the United States and the most recent data about Mexico’s economic activity suggest there will be more dynamism by the end of the year. Mexico anticipates greater growth for the second half of 2014 and 2015.
The growth is supported by the country’s two main pillars: solid macroeconomic foundations and the implementation of structural reforms.
The report also said that the federal government is committed to continue managing Mexico’s economic policies responsibly and will launch reforms to bring about positive results for all Mexicans in the short term.
The structural reforms agenda promoted by the federal government and approved by the legislative power has set the foundations for Mexico’s sustainable growth. Even though the reforms’ full benefits will be more tangible in the mid- and long terms, their immediate benefit has been improved growth expectations that offer a better outlook in view of the world’s low growth expectation, geopolitical conflicts and economic uncertainty.
The most recent indexes of foreign trade, production, employment and consumption show that the Mexican economy is recovering thanks to greater demand that has boosted internal economic activity.
Mexico’s trade activities with the rest of the world have grown consistently throughout the year. Also, industrial production has been steadily rising since May and the construction sector is on a significant recovery.
Automobile production has maintained record levels and internal car sales are increasing.
“These results confirm the forecast that the national economic activity is steadily recovering,” said SHCP.
Regarding the exchange market, Mexico is one of the countries with less volatility because the peso has great liquidity, which allows Mexico to prevent short-term crashes in the financial market from affecting its economy.
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