Central Bank of Mexico Again Cuts Annual Economic Growth View, Warns of Protectionism Michael O'Boyle and Jean Luis Arce - Reuters
go to original September 2, 2016

Agustín Carstens, Mexico's Central Bank Governor, discussed with WSJ's Harriet Torry about the potential action by the United States Federal Reserve to raise interest rates and what negative inflation could mean for a recovering economy. (WSJ Live)

Mexico's central bank has lowered its growth outlook due to economic weakness in the United States, and the bank's governor warned that more protectionism could hurt an anemic global economy as U.S. Republican presidential candidate Donald Trump made a visit to Mexico.

In its quarterly inflation report, the central bank lowered its 2016 economic growth forecast to between 1.7 and 2.5 percent compared with a previous estimate of 2.0 to 3.0 percent.

The central bank's governor, Agustin Carstens, said at a news conference in Mexico City that the bank lowered its forecast after weaker-than-expected growth in the second quarter in Mexico, Latin America's No. 2 economy, and a sluggish U.S. economic expansion.

"We are facing a complex environment," Carstens said. "Without a doubt, the economy of the United States has the biggest influence."

Mexico sends nearly 80 percent of its exports to its northern neighbor.

Policymakers also said they now saw 2017 economic growth of between 2.0 and 3.0 percent versus a previous 2.3 to 3.3 percent.

Read the rest at Reuters

Related: Some Claim Peña Nieto's Administration Characterized by Growing Debt (PanAm Post)

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