Getty Images
Image

Mexico Cuts 2015 Growth Forecast After Weak 1Q

May 21, 2015
Mexico's government sharply lowered its growth forecast for this year on Thursday after the economy grew by a meager 0.4% in the first quarter, hit by slumping oil prices.

Mexico's government sharply lowered its growth forecast for this year on Thursday after the economy grew by a meager 0.4% in the first quarter, hit by slumping oil prices.

The finance ministry said it expected Latin America's second biggest economy to expand by between 2.2 and 3.2% in 2015, compared to a previous forecast of 3.2 to 4.2%.

The announcement came shortly after the national statistics institute posted the disappointing first quarter growth figure of 0.4% compared to the previous three months.

On an annual comparison, the economy grew by 2.5% between January and March compared to the same period last year.

The central bank cut had already Mexico's growth forecast on Tuesday, citing a drop in oil production and low external demand due to weak growth in the neighboring United States.

The bank said it now expects the economy to grow in a range between 2.0 and 3.0%, down from a previous forecast of 2.5% to 3.5%.

Copyright Agence France-Presse, 2015

About the Author

Agence France-Presse

Copyright Agence France-Presse, 2002-2017. AFP text, photos, graphics and logos shall not be reproduced, published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP shall not be held liable for any delays, inaccuracies, errors or omissions in any AFP content, or for any actions taken in consequence.

Sponsored Recommendations

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!