The Secretary of Finance: optimistic.
Last year’s economic growth rate of 2.1% is a good sign, according to Finance Secretary Luis Videgaray.
Announced yesterday by the National Institute of Statistics and Geography, the figure is an indication that growth is accelerating, said the finance chief. However, it is well short of the government’s initial projection of 3.9%.
That forecast was subsequently reduced to a range of 2.1-2.6%. “The figure is within the range that we had, it is exactly what the market expected and confirms that the economy is accelerating,” Videgaray said optimistically.
The government forecast for this year is a range of 3.2-4.2%. Asked if that might be cut, he said no decision would be made until first-quarter results are in, which is some months away yet. The Bank of Mexico, meanwhile, has already moved to cut its forecast. It had predicted 3-4% growth; it is now calling for 2.5-3.5% because of oil prices and domestic consumption.
Videgaray sees encouraging signs in consumer data, the downward movement in inflation and higher employment numbers, along with recovery in manufacturing and construction. But low oil prices present some challenges, he conceded.
Source: Milenio (sp)
Announced yesterday by the National Institute of Statistics and Geography, the figure is an indication that growth is accelerating, said the finance chief. However, it is well short of the government’s initial projection of 3.9%.
That forecast was subsequently reduced to a range of 2.1-2.6%. “The figure is within the range that we had, it is exactly what the market expected and confirms that the economy is accelerating,” Videgaray said optimistically.
The government forecast for this year is a range of 3.2-4.2%. Asked if that might be cut, he said no decision would be made until first-quarter results are in, which is some months away yet. The Bank of Mexico, meanwhile, has already moved to cut its forecast. It had predicted 3-4% growth; it is now calling for 2.5-3.5% because of oil prices and domestic consumption.
Videgaray sees encouraging signs in consumer data, the downward movement in inflation and higher employment numbers, along with recovery in manufacturing and construction. But low oil prices present some challenges, he conceded.
Source: Milenio (sp)
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