BofA cuts Mexico 2022 GDP outlook to 1.5%

© Reuters. FILE PHOTO: Workers are viewed in a building present process construction at Mexico Metropolis, Mexico January 30, 2020. REUTERS/Andres Martinez Casares

(Reuters) -BofA Securities on Tuesday slashed its 2022 forecast for Mexican deplorable home product development to 1.5% from 2.5% previously, citing weaker-than-anticipated home financial notify, underlining considerations referring to the recovery in Mexico.

BofA said it had dwelling its Mexico development forecast properly below the 2.8% consensus as a result of a “conservative policy combine, high uncertainty and low development expectations”, highlighting the COVID-19 peril in the nation as properly.

“Low development is taking mumble despite actual US development, which helps the Mexican financial system through alternate and remittances,” said Carlos Capistran, Canada and Mexico Economist at BofA Securities.

The forecast compares with the 2.77% development predicted by the Mexican central financial institution’s most modern monthly pollof analysts.

Battered by the coronavirus pandemic, Mexico’s financial system shrank by some 8.5% in 2020, and essentially the most modern estimates suggest it fell properly brief of recovering all the lost floor final yr.

Individually, Mexico’s nationwide statistics agency said Mexican industrial output fell 0.1% in November when in contrast to the old month and grew 1.6% in comparability with November 2020.

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