Mexico.- The Bank of Mexico (Banxico) lowered its expectations of economic growth for Mexico in 2022, estimating that for the current year the national economy will grow between 1.6% and 3.2% of the Gross Domestic Product (GDP).
However, the point estimate referred to by the Mexican Central Bank is 2.4% for the current yearwhich represents a decrease in the punctual forecast of 3.2% that had been contemplated previously.
This Wednesday, the Bank of Mexico indicated that, among the main dangers for the Mexican economy during the current year, are those related to the possibility that the covid-19 pandemic persist and, with it, the recovery is less agile than expected.
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Likewise, it was indicated that another of the elements that could put the national economy at risk is the extension of the international bottleneckshigher input costs, episodes of volatility in financial markets, and a lower-than-expected recovery of investment.
On the other hand, regarding the inflationthe autonomous body reported that, for this 2022, it is expected that it will be reduced throughout the year, managing to position itself close to 3% for the third quarter of 2023. However, it emphasized that, considering the current context, the possibility of new economic shocks cannot be ignored.
During the presentation of the report, the Governor of the Central Bank, Victoria Rodriguez Cejaremarked that, like most of the world’s economies, the Mexican economy has had to face an environment of high inflation, in which the pressures on the prices of multiple goods and services as a result of the shocks derived from the health contingency they have gone deeper.
Banxico indicated that, among the main factors that put pressure on national inflation, are external inflationary pressures, the war between Russia and Ukraineas well as episodes of currency depreciation.
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A few weeks ago, Rodríguez Ceja ruled out that the Mexican Republic is going through stagflation, that is, due to high inflation combined with economic stagnation.
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